When are the fees considered fully earned by Crawlspace Medic?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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- The table above provides recurring or isolated fees or payments that you must pay to us or our affiliates or that we or our affiliates impose or collect in whole or in part on behalf of a third party or that you are required to spend by the Franchise Agreement. All fees and expenses described in this Item 6 are nonrefundable. Except as otherwise indicated in the chart above, we uniformly impose all fees and expenses listed and they are payable to us and are fully earned upon receipt by us.
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, all fees and expenses outlined in Item 6 are generally considered fully earned upon receipt by Crawlspace Medic, unless otherwise specified. This means that once Crawlspace Medic receives payment for a particular fee, it is considered fully earned and nonrefundable.
This policy has significant implications for prospective franchisees. It is crucial to understand that once a fee is paid to Crawlspace Medic, it is generally nonrefundable, regardless of whether the franchisee ultimately benefits from the service or product associated with the fee. This underscores the importance of carefully evaluating all fees and expenses before entering into a franchise agreement with Crawlspace Medic.
For example, the Digital Marketing Services Fee of $750 is payable monthly. Since fees are fully earned upon receipt, Crawlspace Medic earns this fee as soon as it is paid each month. Similarly, the Initial Launch Marketing fee of $5,000 is likely earned upon receipt, although the timing of expenditure may vary. Franchisees should clarify the specific conditions under which fees are considered fully earned and whether any exceptions exist to this general policy to avoid potential financial risks.