factual

Are company and affiliate owned Crawlspace Medic outlets required to contribute to the brand fund?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

Company and affiliate owned Crawlspace Medic outlets are not required to contribute to the brand fund.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–29)

What This Means (2024 FDD)

According to the 2024 Crawlspace Medic Franchise Disclosure Document, company and affiliate-owned Crawlspace Medic outlets are not required to contribute to the brand fund. This means that franchisees are solely responsible for contributing to the brand fund, which is used for advertising, marketing, and promotional activities.

The brand fund is administered by Crawlspace Medic's accounting and marketing personnel. Franchisees are required to contribute one percent (1%) of weekly Gross Revenues to the Brand Fund, with the possibility of an increase to two percent (2%) with reasonable notice. These contributions are used for various marketing-related expenses, such as advertising development, marketing seminars, market research, and website maintenance.

While franchisees are required to contribute to the Brand Fund, Crawlspace Medic retains significant control over how the funds are spent. Crawlspace Medic can use the contributions for national, regional, or local advertising and marketing campaigns, and they are not obligated to ensure that individual franchisees directly benefit from these expenditures. Franchisees also need to be aware of the possibility of regional advertising funds or cooperatives being established in the future, which would require additional contributions on top of the Brand Fund contributions.

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.