factual

What is the minimum amount that a Crawlspace Medic franchisee must spend per quarter on local advertising?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

Type of Fee 1 Amount Due Date Remarks
Local Advertising Marketing and Promotional Expenditures5 You must spend a minimum of $5,000 per quarter on local advertising. As incurred Local Advertising, Marketing and Promotional expenditures are paid to third parties.

Source: Item 6 — OTHER FEES (FDD pages 10–16)

What This Means (2024 FDD)

According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are required to spend a minimum of $5,000 each quarter on local advertising, marketing, and promotional programs. All advertising materials must receive approval from Crawlspace Medic. These local advertising expenditures are paid to third parties.

It's important to note that while franchisees may use social media platforms for marketing, expenditures toward social media platforms and materials do not count toward the required local advertising expenditures. Crawlspace Medic also retains the right to create a regional advertising cooperative, and any contributions to this cooperative may be credited against the franchisee's required local advertising spending.

This advertising requirement ensures that Crawlspace Medic franchisees actively promote their business within their local territory. The franchisor's approval requirement allows them to maintain brand consistency and control over marketing messages. The establishment of an advertising cooperative could provide franchisees with additional marketing resources and potentially reduce their individual advertising costs, but it is not currently in place.

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.