Is the Crawlspace Medic Development Fee earned upon payment or at a later date?

According to the 2024 Crawlspace Medic Franchise Disclosure Document, the Development Fee is fully earned when the Multi-Unit Development Agreement is signed. This fee is not refundable under any circumstances, and the developer must pay the full amount to Crawlspace Medic upon signing the agreement. This policy is clearly outlined in the contracts section of the FDD.

For prospective Crawlspace Medic developers, this means that the Development Fee becomes non-refundable immediately upon signing the agreement, regardless of whether any outlets are ever opened. This is a significant financial commitment and risk. The developer should carefully consider their ability to meet the development schedule and other obligations before signing the agreement and paying the fee.

This arrangement is fairly standard in multi-unit franchise agreements. Franchisors typically earn the development fee upfront to compensate them for granting the developer exclusive rights to a specific territory and for the initial administrative work involved in setting up the development agreement. However, the non-refundable nature of the fee emphasizes the importance of thorough due diligence and a solid business plan before entering into such an agreement with Crawlspace Medic.