When is the Management Fee due for a Crawlspace Medic franchise?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
. |
| Amount | Due Date | Remarks | |
|---|---|---|---|
| Successor Fee9 Agreement | $1,500 | Upon signing a then current form franchise agreement | The Successor Agreement Fee is paid to us, over and above any Royalties, Brand Fund or any other fees to which we are entitled. |
| Indemnification10 | The amount of any claim, liability or loss we incur from your Franchised Business. | As incurred | Payable to us. |
| Reimbursement of Costs and Expenses11 | Costs and expenses. | As Incurred | Payable to us. |
| Management Fee | 10% of Gross Sales in the event we must operate franchise due to death, disability, etc. Plus our expenses | Weekly | Payable to us. |
| Post-Termination or Post-Expiration Expenses12 | Costs and expenses | As incurred | Reimbursement of our post termination or post-expiration expenses is paid to us. |
| Testing or Supplier Approval Fee | $500 plus any travel expenses associated with testing or approval | Upon request | Testing or Supplier Approval fees are paid to us. |
| Reimbursement of legal fees and expenses | Our costs and expenses, including but not limited to attorneys' fees, incurred for your failure to pay amounts when due or failure to comply in any way with the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Management Fee is due weekly. This fee is triggered only in specific circumstances: if Crawlspace Medic must operate the franchise due to events like the franchisee's death or disability.
The Management Fee itself is calculated as 10% of Gross Sales, in addition to Crawlspace Medic's expenses incurred while operating the franchise. This means that if the franchisor steps in to manage the business temporarily, the franchisee will be responsible for covering both a percentage of the revenue and any additional costs the franchisor incurs during that period.
For a prospective Crawlspace Medic franchisee, this fee structure highlights the importance of having contingency plans in place for unforeseen circumstances such as death or disability. While the management fee is not a standard, ongoing expense, it could become a significant financial burden if the franchisor has to step in to manage the business. The weekly payment schedule suggests that Crawlspace Medic aims to recoup its operational expenses and management fees promptly during such periods.