If Crawlspace Medic establishes a regional advertising fund or cooperative, are franchisee contributions in addition to the Brand Fund contributions?

According to Crawlspace Medic's 2024 Franchise Disclosure Document, if a regional advertising fund or cooperative is established, franchisee contributions to that fund will be in addition to the required contributions to the Brand Fund.

This means that franchisees could be required to contribute to both a national Brand Fund and a regional advertising fund, increasing their overall advertising expenses. The establishment of a regional fund or cooperative is at Crawlspace Medic's discretion, and participation may be mandatory. Crawlspace Medic also determines how the cooperative will be organized and governed, and has the right to form, dissolve, merge, or change the structure of the cooperatives.

For a prospective franchisee, this highlights the importance of understanding the potential for increased advertising costs beyond the initial Brand Fund contribution. It also underscores the franchisor's control over regional advertising initiatives, which may impact a franchisee's ability to influence local marketing strategies. Franchisees must sign all documents and become a member of the cooperative according to the terms of the documents if a cooperative is established during the term of their Franchise Agreement.