If Crawlspace Medic establishes a regional advertising fund or cooperative in the future, is participation mandatory for franchisees?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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Regional Advertising (Franchise Agreement, Section 13.4)
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all franchised Crawlspace Medic outlets in a designated geographic area. Our affiliateowned outlets may participate in a regional cooperative, in our sole discretion. Each Crawlspace Medic outlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents.
If we establish a regional advertising fund or cooperative, you must contribute amounts we require. Your contributions to a regional advertising fund or cooperative will be in addition to your required contributions to the Brand Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–29)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, if Crawlspace Medic decides to establish a regional advertising fund or cooperative in the future, participation may be mandatory for franchisees, at Crawlspace Medic's sole discretion. A regional cooperative would include all franchised Crawlspace Medic outlets within a specific geographic area. While affiliate-owned outlets may participate, it is at Crawlspace Medic's discretion.
Each Crawlspace Medic outlet gets one vote in the cooperative. Crawlspace Medic will determine the organization and governance of each cooperative in advance and has the right to form, dissolve, merge, or change the structure of these cooperatives. Franchisees must sign all requested documents and become members of the cooperative if one is established during their Franchise Agreement term.
Franchisees must contribute the amounts Crawlspace Medic requires to any regional advertising fund or cooperative. These contributions are in addition to the required contributions to the Brand Fund, which are separate from any regional advertising efforts.