What is the minimum total revenue required for a Crawlspace Medic franchise in Year 3 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 must meet certain minimum performance requirements for total revenue to maintain their territory. In Year 3 of the franchise agreement, the minimum total revenue required is $600,000.
This requirement means that a Crawlspace Medic franchisee must generate at least $600,000 in revenue within their protected territory during the third year of operation. The revenue must come from within the franchisee's designated territory.
Failure to meet this minimum performance requirement constitutes a default of the franchise agreement. If a franchisee fails to achieve the $600,000 minimum in Year 3, Crawlspace Medic has the right to either reduce the size of the franchisee's territory or terminate the franchise agreement altogether. This performance threshold is a critical factor for prospective franchisees to consider, as it directly impacts the sustainability and security of their investment.