How many outlets are required for the Crawlspace Medic Development Fee of $118,000?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
dable under any circumstance.
We will charge you a development fee ("Development Fee") when you sign the Multi Unit Development Agreement. The Development Fee is One Hundred and Eighteen Thousand Dollars ($118,000) for a minimum of two outlets. For each outlet you are required to sign a separate franchise agreement. For Multi Unit Development Agreements for three locations or more, the Development Fee shall be determined by the Franchisor on a case by case basis depending upon the territory potential and size. This payment is fully earned by us, and due in a lump sum payment when you sign the Multi Unit Development Agreement. The Multi
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a Development Fee of $118,000 is required for a minimum of two outlets. This fee is paid when signing a Multi-Unit Development Agreement, where the franchisee commits to opening multiple Crawlspace Medic locations. Each outlet requires a separate franchise agreement.
For Crawlspace Medic franchisees considering a multi-unit development, understanding the development fee structure is crucial. The $118,000 fee covers the right to develop at least two locations, with individual franchise agreements required for each. This fee is fully earned by Crawlspace Medic upon signing the Multi-Unit Development Agreement and is not refundable.
For those interested in developing three or more locations, the Development Fee is determined on a case-by-case basis, depending on the territory size and potential. This implies that the investment could increase significantly depending on the scope of the development. It is important to note that the initial franchise fee is $59,000 per location when signing a single agreement.
Prospective Crawlspace Medic franchisees should carefully evaluate their financial capacity and development plans to determine the most suitable agreement. They should also discuss the specifics of territory size, potential, and the corresponding Development Fee with the franchisor if they plan to develop three or more locations.