When is the initial franchise fee due for a Crawlspace Medic franchise?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
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 of $59,000 is due upon signing the Franchise Agreement. The fee must be paid as a lump sum using cash or available funds.
This means that a prospective Crawlspace Medic franchisee must have the full $59,000 available at the time they sign the agreement to officially become a franchisee. This is a standard practice in franchising, as the initial fee grants the franchisee the rights to use the Crawlspace Medic brand, system, and intellectual property.
It is important for potential franchisees to factor this immediate cost into their initial investment calculations and ensure they have sufficient capital available. Failure to pay the initial franchise fee when due would likely result in a breach of the franchise agreement and prevent the franchisee from moving forward with opening their Crawlspace Medic business.