Can a Crawlspace Medic franchisee include charitable contributions in their local advertising expenditures?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.2.2. Within ten (10) business days of Franchisor's request, Franchisee shall provide a quarterly expenditure report accurately reflecting Franchisee's Local Advertising expenditures for the preceding quarterly period. The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (iv) charitable, political or other contributions or donations.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, franchisees are generally prohibited from including charitable contributions in their local advertising expenditures, unless they receive advance written approval from the franchisor. Crawlspace Medic requires franchisees to spend a minimum of $5,000 per quarter on local advertising, and all advertising materials must be approved by the franchisor.
Specifically, the FDD lists several costs and expenditures that cannot be included in the franchisee's local advertising spend unless explicitly approved in writing by Crawlspace Medic. These unapproved expenditures include incentive programs for employees or agents, research expenditures, salaries and expenses for personnel attending advertising meetings, and charitable, political, or other contributions or donations.
This policy ensures that local advertising funds are used in ways that Crawlspace Medic deems most effective for marketing the brand and its services. While franchisees might want to support local charities, they must seek prior approval to count those contributions toward their minimum advertising expenditure. This requirement gives Crawlspace Medic control over how advertising funds are spent and ensures consistency in marketing efforts across all franchise locations.