What determines the amount Crawlspace Medic franchisees must pay for insurance?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance | Amount paid by us for your insurance obligations | As incurred | You must reimburse us for any insurance costs and other fees we incur due to your failure to meet the insurance obligations required by the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the amount franchisees pay for insurance is equivalent to the amount Crawlspace Medic pays for the franchisee's insurance obligations. These insurance costs are incurred and must be reimbursed to Crawlspace Medic.
This means that Crawlspace Medic initially covers the franchisee's insurance requirements and then the franchisee reimburses the franchisor for these costs. The due date for this reimbursement is 'as incurred,' meaning payment is expected soon after Crawlspace Medic pays for the insurance.
It is also important to note that franchisees must reimburse Crawlspace Medic for any insurance costs and other fees they incur if the franchisee fails to meet the insurance obligations required by the Franchise Agreement. This highlights the importance of adhering to the insurance requirements outlined in the agreement to avoid additional costs.