factual

When is the indemnification fee due for a Crawlspace Medic franchise?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

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Amount Due Date Remarks
Successor Fee9 Agreement $1,500 Upon signing a then current form franchise agreement The Successor Agreement Fee is paid to us, over and above any Royalties, Brand Fund or any other fees to which we are entitled.
Indemnification10 The amount of any claim, liability or loss we incur from your Franchised Business. As incurred Payable to us.
Reimbursement of Costs and Expenses11 Costs and expenses. As Incurred Payable to us.
Management Fee 10% of Gross Sales in the event we must operate franchise due to death, disability, etc. Plus our expenses Weekly Payable to us.
Post-Termination or Post-Expiration Expenses12 Costs and expenses As incurred Reimbursement of our post termination or post-expiration expenses is paid to us.
Testing or Supplier Approval Fee $500 plus any travel expenses associated with testing or approval Upon request Testing or Supplier Approval fees are paid to us.
Reimbursement of legal fees and expenses Our costs and expenses, including but not limited to attorneys' fees, incurred for your failure to pay amounts when due or failure to comply in any way with the Franchise Agreement.

Source: Item 6 — OTHER FEES (FDD pages 10–16)

What This Means (2024 FDD)

According to Crawlspace Medic's 2024 Franchise Disclosure Document, the indemnification fee is due 'as incurred.' This means that a Crawlspace Medic franchisee is responsible for paying the indemnification fee at the time the franchisor incurs a claim, liability, or loss resulting from the franchisee's business operations. The amount of the fee is equivalent to the amount of any claim, liability, or loss that Crawlspace Medic incurs due to the franchisee's Franchised Business.

This fee is payable directly to Crawlspace Medic. It is important for prospective franchisees to understand that this fee is in addition to other fees such as the Continuing Royalty Fee, Brand Development Fund Contribution, and Technology Fee.

As the indemnification fee is 'as incurred', it is difficult to predict how much a franchisee might have to pay during the term of the franchise agreement. It is important to operate the Crawlspace Medic business in compliance with all applicable laws and regulations to minimize the risk of incurring such fees.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.