What happens to the monies in the Crawlspace Medic Brand Fund if it is terminated?

According to the 2024 Crawlspace Medic Franchise Disclosure Document, the Brand Fund is intended to be of perpetual duration. However, Crawlspace Medic retains the right to terminate the Brand Fund at any time, for any reason, or for no reason at all. If the Brand Fund is terminated, all monies within the fund must be spent for advertising or promotional purposes. Alternatively, the funds can be returned to the contributors, without interest, based on their respective contributions.

This stipulation provides some assurance to Crawlspace Medic franchisees that their contributions to the Brand Fund will be used for the intended purpose of advertising and promotion, or will be returned to them should the fund be terminated. However, franchisees should be aware that Crawlspace Medic has broad discretion over when and why the fund might be terminated.

It is important for prospective franchisees to consider the implications of this clause, as the Brand Fund is supported by a contribution of one percent (1%) of weekly Gross Revenues, subject to increases with reasonable notice to two percent (2%) of weekly Gross Revenue generated by the Franchised Business. Understanding the conditions under which these funds are managed and potentially returned is a key aspect of evaluating the franchise opportunity.