What costs and expenditures are generally excluded from a Crawlspace Medic franchisee's local advertising expenditures?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, there are specific costs and expenditures that a franchisee cannot include when reporting their local advertising spend, unless they receive prior written approval from Crawlspace Medic. This requirement ensures that franchisees focus their advertising investments in ways that align with the brand's overall marketing strategy.
The expenditures that are generally excluded from a Crawlspace Medic franchisee's local advertising expenditures are: (1) incentive programs for employees or agents, (2) research expenditures, (3) salaries and expenses for franchisee personnel attending advertising meetings, workshops, or other marketing activities, and (4) charitable, political, or other contributions or donations.
This policy has several implications for prospective Crawlspace Medic franchisees. First, it limits the types of expenses that can count towards the minimum local advertising spend, which is $5,000 per quarter. Second, it requires franchisees to seek approval for non-standard advertising expenses, adding an administrative step. Finally, it ensures that local advertising efforts are focused on activities that directly promote the Crawlspace Medic brand and services, rather than on indirect or unrelated expenses.