To whom is the initial franchise fee paid for a Crawlspace Medic franchise?
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 | $0 to $20,000 | As incurred | Before opening | Contractor/Third-Party providers |
| Furniture and | $1,000 to | As incurred | Before opening | Third-Party Providers |
| Fixtures2 | $5,000 |
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 paid directly to the franchisor. The initial franchise fee is $59,000. This fee is due upon signing the Franchise Agreement and must be paid as a lump sum using cash or available funds.
In addition to the initial franchise fee, prospective Crawlspace Medic franchisees should be aware of other payments made to the franchisor. The FDD indicates that payments for equipment and signage may be made to Crawlspace Medic, as well as payments for the initial inventory.
Understanding where your money is going is an important part of the due diligence process. It is typical for the initial franchise fee to be paid to the franchisor, but the FDD makes it clear that there are other payments that may be payable to Crawlspace Medic as well.