Where can I find information about Crawlspace Medic's Brand Fund administration?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
all 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
- and direction of the Brand Fund and such costs and expenses pursuant Section 13.3.4. The Brand Fund and its earnings shall not otherwise inure to Franchisor's benefit except that any resulting technology and intellectual property shall be deemed the property of Franchisor.
- 13.3.6. Franchisor will prepare an unaudited annual statement of the Brand Fund's operations and will make it available to Franchisee upon request. In administering the Brand Fund, Franchisor undertakes no obligation to make expenditures for Franchisee that are equivalent or proportionate to Franchisee's contribution or to ensure that any particular franchisee benefits directly or pro rata from the production or placement of advertising.
- 13.3.7.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, Item 22, Section 13.3 and subsections, contains information regarding the Brand Fund. Crawlspace Medic has sole discretion regarding the Brand Fund's direction, including approving creative concepts, materials, media, and their allocation. The Brand Fund aims to maximize public recognition and acceptance of the Crawlspace Medic brand and enhance the collective success of all franchised businesses.
The Brand Fund may be used for various advertising, marketing, promotional, and public relations activities. These activities include developing materials, conducting seminars and training programs, and utilizing different media channels such as television, radio, magazines, social media, newspapers, and electronic advertising campaigns. It also covers direct mail, outdoor billboard advertising, public relations activities, marketing research, advertising agencies, website development, and personnel costs for internally administered 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 Brand Fund's administration.
Crawlspace Medic will provide an unaudited annual statement of the Brand Fund's operations to franchisees upon request. While the Brand Fund is intended to be perpetual, Crawlspace Medic reserves the right to terminate it at any time and for any reason. However, Crawlspace Medic will not terminate the Brand Fund until all monies in the Brand Fund have been expended.
As a Crawlspace Medic franchisee, it's important to understand that the franchisor does not guarantee that expenditures from the Brand Fund will be equivalent or proportionate to your contributions, nor that you will directly benefit from the advertising. The franchisor also has the right to increase the Brand Fund contribution to 2% of gross revenue generated monthly.