What kind of advertising and promotional materials might Crawlspace Medic provide to franchisees?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
in reasonable limits (Franchise Agreement, Section 7.6).
- e. from time to time, as may become available, provide you with samples or cameraready advertising and promotional materials (Franchise Agreement, Section 10.6).
- f. conduct inspections of your Franchised Business, at the frequency and duration that we deem advisable. Such inspections include evaluating your service to ensure that they meet our standards (Franchise Agreement, Section 10.4).
- g. provide you with any written specifications for required equipment, products and services and provide you with updated lists of any approved suppliers of these items (Franchise Agreement, Section 10.7).
- h. advise on the advertised selling price for products and services for your Crawlspace Medic business. We reserve the right to establish regional or national accounts with other companies that want to conduct business with us across multiple franchised or company owned territories. If we establish such accounts, you are required to service them on the terms negotiated. If you cannot or are unwilling to do so, we reserve the right to service those accounts or designate another Franchisee to do so (Franchise Agreement, Section 12.5).
i. approve or disapprove of all advertising, direct mail, and other promotional material and campaigns you propose in writing to us. We will respond within ten (10) business days, either accepting or rejecting the proposed material and/or campaign; however, if we do not respond within ten (10) business days, the proposed material and/or campaign is deemed "disapproved". (Franchise Agreement, Section 13.6).
4. Advertising
Local Advertising (Franchise Agreement, Sections 13.2 and 13.6)
We require you to spend at least five thousand dollars ($5,000) in Market Introduction advertising and promotional activities during the sixty (60) days prior and ninety (90) days following the opening of your Franchised Business in the Territory. In addition, you must spend a minimum of five thousand dollars ($5,000) per quarter on local advertising and we must approve all advertising materials. We reserve the right to collect some or all of your grand opening funds and/or your Local Advertising expenditure and implement grand opening campaign activities and/or Local Advertising on your behalf.
You may develop advertising materials for your own use at your own cost, and you may use marketing materials that we may offer to you from time to time. You may not use any advertising or marketing materials, including press releases, unless they have been approved in advance in writing by us, which approval may be withheld in our discretion. We will respond to your request for approval within ten (10) business days;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–29)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic may provide franchisees with samples or camera-ready advertising and promotional materials as they become available. However, franchisees are also permitted to develop their own advertising materials at their own cost, subject to the franchisor's prior written approval. Crawlspace Medic requires franchisees to spend a minimum of $5,000 in Market Introduction advertising and promotional activities during the 60 days prior to and 90 days following the opening of their franchise. Additionally, franchisees must spend a minimum of $5,000 per quarter on local advertising, with all advertising materials requiring franchisor approval.
Crawlspace Medic does not provide for the placement of local advertising on behalf of the franchisee and has no obligation to spend any amount on advertising in the franchisee's area or territory. Franchisees are responsible for local advertising placement and must list the franchised business in local business directories, including listings on Internet search engines. Cooperative advertising with other Crawlspace Medic franchisees in the area is permitted with prior written approval.
Franchisees are also required to contribute to the Brand Fund, which is one percent of weekly Gross Revenues, subject to increases with reasonable notice to two percent of weekly Gross Revenue generated by the franchised business. The Brand Fund is used for the development, production, and placement of advertising, marketing, promotional, and public relations materials and programs. It can also cover marketing seminars, training programs, market research, advertising agency services, website development, and administrative costs related to advertising. Crawlspace Medic reserves the right to use Brand Fund contributions to place advertising in national, regional, or local media and conduct marketing campaigns through any channel, including Internet and direct-mail campaigns, but has no obligation to advertise in any particular area.