What is the intended purpose of the Crawlspace Medic Brand Fund?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
d Fund and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof. Franchisee agrees and acknowledges that the Brand Fund is intended to maximize general public recognition and acceptance of the Marks and enhance the collective success of all Franchised Businesses operating under the System.
- 13.3.3. Franchisor may, but has no obligation to, contribute to the Brand Fund on the same basis as Franchisee with respect to Crawlspace Medic outlets operated by Franchisor or Franchisor's affiliates.
- 13.3.4. Franchisor may use the Brand Fund to satisfy any and all costs of developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional and public relations materials, programs, campaigns, sales and marketing seminars and training programs of every kind and nature, through media now existing or hereafter developed (including, without limitation, the cost of television, radio, magazine, social media, newspaper and electronic advertising campaigns; direct mail and outdoor billboard advertising; public relations activities; conducting marketing research, employing advertising agencies to assist therein; developing, enhancing and maintaining the Website; and personnel and other departmental costs for advertising that Franchisor internally administers or prepares).
- 13.3.5. The Brand Fund will not be used to defray any of Franchisor's general operating expenses, except for reasonable administrative costs and overhead that Franchisor may incur in activities related to the administration
- and direction of the Brand Fund and such costs and expenses pursuant Section 13.3.4. The Brand Fund and its earnings shall not otherwise inure to Franchisor's benefit except that any resulting technology and intellectual property shall be deemed the property of Franchisor.
- 13.3.6. Franchisor will prepare an unaudited annual statement of the Brand Fund's operations and will make it available to Franchisee upon request. In administering the Brand Fund, Franchisor undertakes no obligation to make expenditures for Franchisee that are equivalent or proportionate to Franchisee's contribution or to ensure that any particular franchisee benefits directly or pro rata from the production or placement of advertising.
- 13.3.7. Although the Brand Fund is intended to be of perpetual duration, Franchisor may terminate it at any time and for any reason or no reason. Franchisor will not terminate the Brand Fund, however, until all monies in the Brand Fund have been spent for advertising or promotional purposes or returned to contributors, without interest, on the basis of their respective contributions.
- 13.4. Regional Advertising.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the Brand Fund is intended to maximize public recognition and acceptance of the Crawlspace Medic marks and enhance the collective success of all franchised businesses operating under the Crawlspace Medic system. The Brand Fund is controlled by the Franchisor, who has the sole discretion to approve creative concepts, materials, and media used in advertising programs, as well as their placement and allocation.
The Brand Fund may be used to cover the costs of various advertising, marketing, and promotional activities. These include developing and disseminating advertising materials through various media channels such as television, radio, magazines, social media, and newspapers. It also covers direct mail, outdoor billboard advertising, public relations activities, marketing research, advertising agencies, website development, and personnel costs for advertising that Crawlspace Medic internally manages.
While the Brand Fund is intended to be perpetual, Crawlspace Medic can terminate it at any time, for any reason. If terminated, all remaining funds must be spent on advertising or promotional purposes or returned to the contributors (franchisees) based on their contributions, without interest. The Brand Fund cannot be used for Crawlspace Medic's general operating expenses, except for reasonable administrative costs and overhead related to the fund's administration. Franchisees should note that Crawlspace Medic has no obligation to ensure that expenditures from the Brand Fund are equivalent or proportionate to each franchisee's contribution, nor is there a guarantee that any franchisee will directly benefit from the advertising.