What is the minimum total revenue required for a Crawlspace Medic franchise in Year 1 of the agreement?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
er that revenue does not count toward your Minimum Performance Requirement.
You are required to maintain the following Minimum Performance Requirements for Total Revenue during the term of your franchise agreement.
Year 1 Year 2 Year 3 Year 4 Year 5 Minimum Performance Requirements Revenue Per Year of Agreement $225,000 $350,000 $600,000 $750,000 $900,000
Total Revenue
The revenue that makes up your Minimum Performance Requirement must come from within your protected territory. If you fail to maintain these Minimum Performance Requirements, it is considered a default of your franchise agreement and we have the right to eit
Source: Item 12 — TERRITORY (FDD pages 29–30)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a franchisee is required to maintain a minimum total revenue of $225,000 in Year 1 of the franchise agreement. This revenue must be generated from within the franchisee's protected territory.
Failing to meet this minimum performance requirement constitutes a default of the franchise agreement. If a franchisee defaults, Crawlspace Medic has the right to either reduce the size of the territory or terminate the franchise agreement altogether.
This minimum revenue requirement is a critical factor for prospective franchisees to consider. It highlights the importance of a well-defined territory and effective business operations to achieve the required revenue target. Franchisees should carefully evaluate their market potential and business plan to ensure they can meet this threshold and avoid potential penalties.