When is the initial franchise fee for Crawlspace Medic due?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
The Development Fee is fully earned at the time this Multi-Unit Development Agreement is signed and is not refundable under any circumstances. Developer shall pay the full amount of the Development Fee to Franchisor upon Developer's execution of this Agreement.
4.2 Application of Development Fee. Contemporaneous with the execution of this Agreement, Developer shall execute the initial Franchise Agreement for the first Crawlspace Medic outlet to be established pursuant to the Mandatory Development Schedule. Developer shall receive a corresponding credit from the Development Fee, which shall be applicable to the Initial Franchise Fee due under the initial Franchise Agreement. Upon the execution of each of additional Franchise Agreement for outlets to be developed hereunder, Developer shall receive a corresponding credit from the Development Fee, which shall be applicable to the full amount of the Initial Franchise Fee payable pursuant to each such additional Franchise Agreement. Upon Franchisor's approval, Developer may enter into the initial Franchise Agreement or any subsequent Franchise Agreement as required under this Agreement using a newly formed entity, such as a limited liability company, corporation or partnership, for the sole purpose of entering into a Franchise Agreement and operating the Crawlspace Medic outlet pursuant thereto, provided that Developer shall also personally sign such Franchise Agreement as a principal.
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the timing of the initial franchise fee payment depends on whether the franchisee is signing a single-unit or multi-unit agreement. For a single-unit franchise, the initial franchise fee is due when the Franchise Agreement is signed.
For a multi-unit development agreement, the development fee is due in full when the Multi-Unit Development Agreement is signed and is non-refundable. A credit from the development fee will be applied to the initial franchise fee due under each individual Franchise Agreement as each Crawlspace Medic outlet is established.
It is important for prospective Crawlspace Medic franchisees to understand these payment terms and ensure they have the necessary funds available when signing the agreements. Franchisees should also be aware that the development fee for multi-unit agreements is non-refundable, so careful consideration should be given before entering into such an agreement.