How is the Crawlspace Medic Continuing Royalty Fee paid?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fee2 | Six Percent (6%) of Gross Revenues per week. | Royalties are collected weekly via ACH. | Gross Revenues are defined in Note 2 below. Royalties are currently paid directly to us. |
| Brand Development Fund Contribution3 | Up to 2% of Gross Revenues. Currently Brand Fund Contribution is 1% of Gross Revenues per week | Weekly via ACH at the same time as the Royalty. | Brand Fund Contributions are paid directly to the Brand Fund. |
| Technology Fee4 | 0.5% of Gross Revenue Per Unit | Weekly via ACH at the same time as the Royalty. | Payable to us |
| CSR Fee | 1.5% of Gross Revenue Per Unit | Weekly via ACH at the same time as the Royalty. | This fee is payable to us for CSR Support including phone and webform intake from the corporate office. |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Continuing Royalty Fee is 6% of Gross Revenues per week. Crawlspace Medic franchisees are required to pay this royalty weekly via ACH (Automated Clearing House), which means the funds are electronically transferred from the franchisee's bank account. The royalty payments are made directly to Crawlspace Medic.
In addition to the Continuing Royalty Fee, Crawlspace Medic franchisees also pay other fees weekly via ACH, including a Brand Development Fund Contribution of up to 2% of Gross Revenues (currently set at 1%), a Technology Fee of 0.5% of Gross Revenue per unit, and a CSR (Customer Service Representative) Fee of 1.5% of Gross Revenue per unit. These fees, like the Continuing Royalty Fee, are collected weekly, simplifying the payment process for the franchisee.
If a Crawlspace Medic franchisee fails to pay the Continuing Royalty Fee or submit their Gross Revenue report when due, they may be charged a late fee of $100, in addition to interest charges. The interest rate is 1.5% per month or the highest rate allowed by law, calculated from the date of nonpayment or underpayment. This highlights the importance of timely payments and accurate reporting to avoid additional costs.