How does a Crawlspace Medic franchisee pay the Royalty and Brand Fund payment?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
sole discretion and at any time and from time to time, to increase the amount of the Brand Fund Contribution to two percent (2%) of the Gross Revenue generated monthly. Payments will be made in the same manner and time as the Royalty Fees. If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.2 and 6.3 hereof, Franchisor shall 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the Brand Fund contribution payments are made in the same manner and at the same time as the royalty fees. This implies that the payment methods and schedule for both fees are aligned.
If a Crawlspace Medic franchisee fails to report gross revenue on time, the franchisee will be charged a late fee and interest, as well as an additional penalty. The penalty consists of paying 120% of the last Brand Fund contribution payable. However, Crawlspace Medic will reconcile the amounts due once the franchisee reports the gross revenues.
Crawlspace Medic retains the right to increase the Brand Fund contribution to 2% of monthly gross revenue. The Brand Fund is managed at Crawlspace Medic's discretion to enhance the recognition and success of all franchised businesses. The Brand Fund can be used for various advertising, marketing, and promotional activities, but not for the general operating expenses of the franchisor, except for reasonable administrative costs.