Is the Crawlspace Medic Multi Unit Development Fee refundable?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
The Development Fee is fully earned at the time this Multi-Unit Development Agreement is signed and is not refundable under any circumstances. Developer shall pay the full amount of the Development Fee to Franchisor upon Developer's execution of this Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the Multi-Unit Development Fee is not refundable under any circumstances. The document states that the Development Fee is fully earned by Crawlspace Medic at the time the Multi-Unit Development Agreement is signed.
For a prospective Crawlspace Medic franchisee, this means that once the Multi-Unit Development Agreement is signed, the Development Fee is non-refundable, regardless of whether the franchisee successfully opens multiple locations or not. The franchisee must pay the full Development Fee upon signing the agreement.
However, the Development Fee can be applied as a credit towards the Initial Franchise Fee for each Crawlspace Medic outlet developed under the agreement. This means that while the initial Development Fee is non-refundable, its value is later applied to offset the cost of the franchise fees for each individual location as they are opened. This is a common practice in multi-unit franchising, where the initial fee secures the development rights for a specific territory.