What is the minimum revenue performance requirement for a Crawlspace Medic franchise in Year 3 of the agreement?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
e per year of agreement follow:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Minimum | $225,000 | $350,000 | $600,000 | $750,000 | $900,000 |
| Performance | |||||
| Requirement | |||||
| Revenue Per Year | |||||
| of Agreement |
The revenue that goes into your
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a franchisee must meet a minimum revenue performance requirement. The minimum revenue a Crawlspace Medic franchise is expected to generate in Year 3 of the franchise agreement is $600,000.
Crawlspace Medic considers failure to meet the minimum performance requirements a default under the franchise agreement. If a franchisee fails to meet these revenue targets, Crawlspace Medic has the right to reduce the size of the territory granted to the franchisee or even terminate the franchise agreement altogether.
Gross revenues include all income derived from the operation of the franchised business, including cash, services, and business interruption insurance proceeds. However, gross revenues do not include sales tax that is collected from customers and transmitted to the appropriate taxing authorities. This definition is important for franchisees to understand, as it dictates what income counts toward meeting the minimum performance requirements and calculating royalty payments.