What is the initial franchise fee for Crawlspace Medic based on?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee1 | $59,000 | Lump sum payment in cash or available funds. | Upon signing the Franchise Agreement. | Payable to us |
| Design and | $0 to | As incurred | Before opening | Third-Party Providers |
| Architectural Fees2 | $3,000 | |||
| Construction, Leasehold Improvements 2 | $ |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–20)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the initial franchise fee is a flat $59,000. This fee is due in a lump sum payment using cash or available funds when the Franchise Agreement is signed. The FDD states that the initial franchise fee is the same for all similarly situated franchisees; however, Item 5 of the FDD may contain information regarding available discounts.
This initial franchise fee is part of the total estimated initial investment, which ranges from $118,900 to $242,200. This total includes expenses such as design and architectural fees ($0 to $3,000), construction and leasehold improvements ($0 to $20,000), furniture and fixtures ($1,000 to $5,000), equipment including a vehicle ($10,000 to $53,000), signage ($600 to $3,000), CRM/Back Office system ($2,500 to $4,300), initial inventory ($0 to $800), facility occupancy costs ($0 to $2,500), lease, utility, and security deposits ($1,300 to $2,600), insurance deposits and premiums ($2,000 to $8,000), pre-opening travel and training expenses ($5,000 to $10,000), initial launch marketing ($5,000 to $10,000), professional fees ($1,000 to $8,000), business permits and licenses ($500 to $1,500), office equipment and supplies ($1,000 to $1,500), and additional funds for the first three months ($40,000 to $60,000).
Prospective franchisees should note that these costs can vary. The FDD advises that costs may differ based on factors such as the geographic area, local market conditions, the specific location, and the time it takes to build sales. Crawlspace Medic recommends that potential franchisees use these estimates as a guide while developing their own business plan and budget, and to investigate specific costs in their area to prepare for the investment required to start the franchise.