Is a Crawlspace Medic franchisee required to make equipment and technology updates?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
5.2.4 Franchisee shall have completed any required updates to the Franchised Business location in order to meet system standards.
5.2.6 Franchisee performs such remodeling, repairs, replacements and redecoration as Franchisor may require causing the Franchised Business location, equipment, and trade dress to conform to the plans and specifications being used for new franchised businesses on the renewal date.
12.3.4. Franchisor may require Franchisee, at Franchisee's sole expense, to enter into software license agreements in the form that Franchisor requires for software Franchisor develops or acquires for use in the System. Currently this is Vonigo software.
12.3.5. Franchisee shall have and maintain adequate hardware and software in order to access the Internet at the speed required by Franchisor from time to time. Franchisee shall utilize the electronic mail account provided by Franchisor. Franchisee shall promptly read and respond to all electronic mail related to the Franchised Business no less often than on a daily basis and shall accept and acknowledge receipt of all electronic mail sent by Franchisor.
12.3.7. Franchisee shall pay all fees and expenses for technology required by this Agreement, including but not limited to, the costs of computer hardware and software, regularly recurring fees for software and Internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform. Currently this fee is 0.5% of Gross Revenue per unit per month.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are required to complete updates to the franchised business location to meet system standards. This obligation extends to remodeling, repairs, replacements, and redecoration necessary to ensure the location, equipment, and trade dress conform to the standards used for new Crawlspace Medic franchises at the time of renewal.
Crawlspace Medic franchisees must also enter into software license agreements for software the franchisor develops or acquires for use in the system. Currently, this includes Vonigo software. Franchisees must maintain adequate hardware and software to access the internet at the speed required by Crawlspace Medic and utilize the electronic mail account provided by the franchisor, responding to emails daily.
Furthermore, franchisees are responsible for all fees and expenses related to required technology, including computer hardware and software costs, recurring software and internet access fees, license fees, help desk fees, and any user-based fees for a franchise portal or benchmarking platform. Currently, this technology fee is 0.5% of gross revenue per unit per month. These requirements ensure that all Crawlspace Medic locations maintain a consistent brand image and utilize up-to-date technology, but also represent ongoing costs for the franchisee.