factual

Can Crawlspace Medic collect a Crawlspace Medic franchisee's local advertising expenditure and implement local advertising on the franchisee's behalf?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

et areas and advertising agencies, the standards and specifications established by Franchisor, as modified from time to time, shall be final and binding upon Franchisee.

13.2. Local Advertising.

  • 13.2.1. In addition to the expenditures set forth in Section 13.2.3 below, Franchisee shallspend a minimum of five thousand dollars ($5,000) per quarter on local advertising and we must approve all advertising materials. Franchisor reserves the right to collect some or all of Franchisee's Local Advertising expenditure and implement Local Advertising on Franchisee's behalf.
  • 13.2.2. Within ten (10) business days of Franchisor's request, Franchisee shall provide a quarterly expenditure report accurately reflecting Franchisee's Local Advertising expenditures for the preceding quarterly period. The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (iv) charitable, political or other contributions or donations.
  • 13.2.3. Franchisee shall spend at least five thousand Dollars ($5,000.00) on Local Advertising and promotional activities in the Territory within the sixty (60) days prior to opening and the first ninety (90) days after t

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2024 FDD)

According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic has the right to collect a franchisee's local advertising expenditure and use it to implement local advertising on the franchisee's behalf.

Specifically, Crawlspace Medic franchisees are required to spend a minimum of $5,000 per quarter on local advertising, and all advertising materials must be approved by Crawlspace Medic. Crawlspace Medic reserves the right to collect some or all of the franchisee's local advertising expenditure to implement local advertising for the franchisee.

Additionally, Crawlspace Medic franchisees must spend at least $5,000 on local advertising and promotional activities within 60 days prior to opening and the first 90 days after opening their Crawlspace Medic franchise. Crawlspace Medic also reserves the right to collect some or all of the franchisee's grand opening funds to implement grand opening campaign activities on the franchisee's behalf.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.