What is the current required contribution to the Crawlspace Medic Brand Development Fund?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor reserves the right, in Franchisor's sole discretion and at any time and from time to time, to increase the amount of the Brand Fund Contribution to two percent (2%) of the Gross Revenue generated monthly.
Payments will be made in the same manner and time as the Royalty Fees.
If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.2 and 6.3 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable.
Franchisor shall reconcile amounts when Gross Revenues are reported.
- 13.3.2.
Franchisor shall direct the Brand Fund and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof.
Franchisee agrees and acknowledges that the Brand Fund is intended to maximize general public recognition and acceptance of the Marks and enhance the collective success of all Franchised Businesses operating under the System.
- 13.3.3.
Franchisor may, but has no obligation to, contribute to the Brand Fund on the same basis as Franchisee with respect to Crawlspace Medic outlets operated by Franchisor or Franchisor's affiliates.
- 13.3.4.
Franchisor may use the Brand Fund to satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional and public relations materials, programs, campaigns, sales and marketing seminars and training programs of every kind and nature, through media now existing or hereafter developed (including, without limitation, the cost of television, radio, magazine, social media, newspaper and electronic advertising campaigns; direct mail and outdoor billboard advertising; public relations activities; conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website; and personnel and other departmental costs for advertising that Franchisor internally administers or prepares).
- 13.3.5.
The Brand Fund will not be used to defray any of Franchisor's general operating expenses, except for reasonable administrative costs and overhead that Franchisor may incur in activities related to the administration
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the franchisor reserves the right to increase the Brand Fund Contribution to a maximum of two percent (2%) of monthly Gross Revenue.
The Brand Fund is intended to maximize public recognition of the Crawlspace Medic brand and enhance the success of all franchised businesses. The funds can be used for various advertising, marketing, and promotional activities, including television, radio, magazine, social media, newspaper, and electronic advertising campaigns, as well as direct mail, outdoor billboard advertising, public relations, marketing research, website development, and personnel costs for advertising.
The Brand Fund will not be used for Crawlspace Medic's general operating expenses, except for reasonable administrative costs and overhead related to the fund's administration. If a franchisee fails to report Gross Revenue on time, Crawlspace Medic can collect 120% of the last Brand Fund Contribution payable, in addition to late fees and interest. The franchisor will reconcile amounts when Gross Revenues are reported.