table_specific

How many hours of on-the-job training does Crawlspace Medic provide for 'Sales Procedures'?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

h. Trademarks and Proprietary Information 9.4, Article 14, 19.2, 19.3, 19.4 Not Applicable 13, 14
i. Restrictions on Products/Services Offered 12.1.1, 12.1.4, 12.6 Not Applicable 8
j. Warranty and 12.1.5 Not Applicable 6
Customer Service
Requirements
k. Territorial 13.2 Article 5 12
Development and
Sales Quotas
l. Ongoing 12.1.4, 12.3.5 Not Applicable 8
Product/Service
Purchases
m. Maintenance, Appearance and Remodeling Requirements Article 9, 12.1.2, 12.1.5, 12.1.9 Not Applicable 11,17
n. Insurance Article 15 Not Applicable 7
o. Advertising Article 13 Not Applicable 6, 11
p. Indemnification 15.4, 15.6, 16.3.6, 21.1 Article 9 14
q. Owner’s Participation, 11.1, 11.3, Not Applicable 11, 15
Management, Staffing 12.1.6
r. Records /Reports 12.2 Not Applicable 6
s. Inspections and Audits 9.2, 12.1.7, 12.2.5 Not Applicable 6, 11
t. Transfer Article 16 Article 6 17
u. Renewal Article 5 Not Applicable 17
v. Post-Termination Article 18 Section 7.4 17
Obligations
w. Non-Competition 19.5 Article 8 17
Covenants
x. Dispute Resolution Article 20 Article 10 17

ITEM 10: FINANCING

We do not offer direct or indirect financing. We do not guarantee any note, lease, or obligation on your behalf. We will, if such is available, introduce you to financial sources and suppliers who may offer credit arrangements, but we will not derive income from the placement of financing. You may obtain financing from any source, at your discretion, upon such terms and conditions as you may negotiate.

ITEM 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING

Except as listed below, we are not required to provide you with any assistance.

1. Pre-Opening Obligations

Before you open your Franchised Business, we will:

  • a. approve the protected territory, or Area of Primary Responsibility for your Franchised Business. A protected territory will consist of a minimum population of fifty thousand (50,000) homes with crawlspaces and/or partial basements within a geographic radius defined by Zip Codes or other readily ascertainable geographic boundaries. (Franchise Agreement, Sections 8.1.2, 10.1).
  • b. loan to you the Crawlspace Medic Operations Manual and other manuals and training aids we designate for use in the operation of your Crawlspace Medic Franchise, as they may be revised from time to time. (Franchise Agreement, Section 10.3).
  • c. provide a written list of equipment, signage, supplies and products that will be required to open the Franchised Business. We and our affiliates are not obligated to install any of these items (Franchise Agreement, Section 10.5).
  • d. provide you and up to two other individuals with initial training at our headquarters in Columbia, SC or another location we designate. We will determine, in our sole discretion, whether you satisfactorily complete the initial training. (Franchise Agreement, Sections 7.1, 7.2).
  • e. provide a trainer at your premises for on-site training, supervision and assistance for up to five days within thirty days following the opening of your Franchised Business. (Franchise Agreement, Section 7.3).
  • f. review your proposed lease for franchisor required terms only. (Franchise Agreement, Section 8.1)
  • g. provide sample warehouse/office layout and specs. (Franchise Agreement, Section 8.2)

2. Time to Open

We estimate the typical length of time between the signing of the Franchise Agreement and the time you open your Crawlspace Medic franchised business is 45 to 60 days. Factors that may affect this time period include your ability to acquire financing or permits; warehouse and office build build-out; vehicle modifications, and completion of required training. If you have not opened your Franchised Business within three months after you

sign the Franchise Agreement, you must obtain our consent to extend the time to open, which we may or may not grant, at our discretion. Failure to open your Franchised Business within the original time as extended, is a default of the Franchise Agreement. (Franchise Agreement, Sections 8.1, 8.3)

3. Obligations After Opening

During the operation of your franchise, we will:

  • a. offer from time to time, in our discretion, mandatory or optional additional training programs. If we require it, you must attend mandatory additional training offered by us for up to five (5) days each year at a location we designate and attend an annual business meeting or franchisee conference for up to three (3) days each year at a location we designate. Failure to attend mandatory additional training or an annual business meeting or conference is a default of the Franchise Agreement. We reserve the right to impose a reasonable fee for tuition and/or attendance for all additional training programs, including the annual business meeting or conference. You must also pay your transportation, lodging, meals and other expenses to attend any mandatory training program. If you fail to attend any mandatory training program, you are required to obtain the training at a location we designate, at your sole cost, which includes tuition at the then-current rate, plus all of your travel costs and our trainer's travel costs. (Franchise Agreement, Section 7.4).
  • b. upon your request, or as we determine to be appropriate, provide remedial on-site training and assistance at your premises. For any on-site remedial training, you must reimburse all costs for the services of our trainer, including but not limited to the trainer's then-current per diem fee and all travel-related expenses, such as transportation, meals and lodging (Franchise Agreement, Section 7.5).
  • c. upon your request, provide individualized assistance to you within reasonable limits by telephone, video conference, electronic mail or postage service, subject at all times to availability of our personnel and 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; however, if we do not respond within ten (10) business days, the proposed advertising or marketing material is deemed "disapproved".

We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. You must list the Franchised Business in local business directories, including, but not limited to, listings on Internet search engines. If feasible, you may do cooperative advertising with other Crawlspace Medic franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval.

System-wide Brand Development Fund (Franchise Agreement, Section 13.3)

You are required to contribute to the Brand Fund one percent (1%) of weekly Gross Revenues, subject to increases with reasonable notice to two percent (2%) of weekly Gross Revenue generated by your Franchised Business.

Our accounting and marketing personnel administer the Brand Fund. We may use Brand Fund contributions to pay any and all costs for the development, production and placement of advertising, marketing, promotional and public relations materials and programs. We may also use Brand Fund contributions to pay any and all costs of marketing seminars and training programs, market research, services of advertising and/or public relations agencies, and website development and maintenance. We may further use Brand Fund contributions to pay our costs (including salaries of our staff engaged in consumer marketing and other administrative costs) for advertising that is administered by us or prepared by us, as well as for administration and direction of the Brand Fund.

The Brand Fund will not be used to defray any of our other general operating expenses. Brand Fund contributions will not be used to solicit new franchise sales; provided however, we reserve the right to include "Franchises Available" or similar language and contact information in advertising produced with Brand Fund contributions.

The Brand Fund and its earnings shall not otherwise inure to our benefit except that any resulting technology and intellectual property shall be deemed our property.

The Brand Fund collects and expends the Brand Fund contributions for the benefit of the System as a whole. We reserve the right to use the Brand Fund contributions to place advertising in national, regional or local media (including broadcast, print, or other media) and to conduct marketing campaigns through any channel, in our discretion, including but not limited to, Internet and direct-mail campaigns. We have no obligation, however, to place advertising or conduct marketing campaigns in any particular area, including the Territory where your Franchised Business is located.

We have no obligation to make expenditures that are equivalent or proportionate to your Brand Fund contribution or to ensure that you benefit directly or pro rata from the production or placement of advertising from the Brand Fund

Company and affiliate owned Crawlspace Medic outlets are not required to contribute to the brand fund.

An annual unaudited financial statement of the Brand Fund is available to any franchisee upon written request.

If we spend more or less than the total of all contributions to the Brand Fund in any fiscal year, we may carry-forward any surplus or deficit to the next fiscal year.

In the fiscal year ending December 31, 2023, Brand Fund contributions were expended on website enhancement, digital marketing and search engine optimization marketing. Although the Brand Fund is intended to be of perpetual duration, we may terminate it at any time and for any reason or no reason. We 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.

Regional Advertising (Franchise Agreement, Section 13.4)

Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all franchised Crawlspace Medic outlets in a designated geographic area. Our affiliateowned outlets may participate in a regional cooperative, in our sole discretion. Each Crawlspace Medic outlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents.

If we establish a regional advertising fund or cooperative, you must contribute amounts we require. Your contributions to a regional advertising fund or cooperative will be in addition to your required contributions to the Brand Fund.

Advertising Council (Franchise Agreement, Section 9.6)

We do not have an advertising council composed of franchisees that advises us on advertising policies. The Franchise Agreement gives us the right, in our discretion, to create a franchisee advisory council to communicate ideas, including proposed advertising policies. If created, we will determine in advance how franchisees are selected to the council, which may include factors such as a franchisee's level of success, superior performance and studio profitability. We reserve the right to change or dissolve the council at any time.

5. Computer Systems (Franchise Agreement, Section 12.3)

You are required to use the hardware, software, system tools and processes as stated in the Operations Manual. Currently, you are required to have the following hardware and software.

Hardware: Desktop or laptop computer, All-In-One Printer/Copier/Fax/Scanner, High

Speed Internet Tablet computer

Software: QuickBooks Accounting Software, Vonigo

There are no contractual limitations on the frequency and cost of upgrades and/or updates to the above-described systems or programs. We may in the future modify or establish other sales reporting systems or project design methods, as we deem appropriate, for the accurate and expeditious reporting of Gross Revenue and delivery of our products and services. You must fully cooperate in implementing any such modifications at your expense.

We have no obligation to maintain, repair, update or upgrade your computer and software. At your cost, you must provide on-going maintenance and repairs to your computer and software. We cannot estimate the cost of maintaining, updating and upgrading your smart device or computer hardware and software because it will depend on the make and model of your device and computer, repair history, usage, local cost of computer maintenance services in your area and technological advances that we cannot predict.

We reserve the right to have independent access to your sales information and customer data generated by and stored in your system. There are no contractual limitations on our right to have full access to this information. At our option, we may retrieve, download, analyze and store such information and data at any time. Upon our request, you must sign any documents we require to allow us to independently and electronically access and retrieve the information stored on the system. We own all customer data stored in your computer system.

6. Table of Contents of Operations Manual

The Table of Contents of our Crawlspace Medic Operations Manual, current as of the date of this Disclosure Document is attached as Exhibit D. The Operations Manual has a total of 293 pages.

7. Training (Franchise Agreement, Article 7)

You (if the franchisee is an individual) or the managing member (if the franchisee is a business entity) must also complete our Initial Training Program, to our satisfaction, at least two (2) weeks before opening your Franchised Business. We will train you at our Crawlspace Medic headquarters in Columbia, South Carolina, or another location we specify:

| Subject | Hours of Classroom Training | Hours of On-the- Job Training | Location |

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–29)

What This Means (2024 FDD)

According to Crawlspace Medic's 2024 Franchise Disclosure Document, the initial training program includes 8 hours of on-the-job training dedicated to sales procedures. This training takes place at Crawlspace Medic headquarters in Columbia, SC.

This on-the-job training is part of a broader training curriculum that also includes classroom instruction on topics ranging from the company's history and philosophy to marketing, management, and customer service. The hands-on nature of the sales procedures training suggests that franchisees will receive practical experience and guidance in real-world sales techniques relevant to the Crawlspace Medic business model.

Prospective franchisees should consider the location of the training and factor in travel costs to Columbia, SC. Understanding the specific content covered during the 8 hours of sales procedures training would also be beneficial. This would allow a franchisee to assess how well the training aligns with their prior experience and identify any areas where they may need additional support or development.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.