Is Crawlspace Medic obligated to spend any amount on advertising in a franchisee's area or territory?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. You must list the Franchised Business in local business directories, including, but not limited to, listings on Internet search engines. If feasible, you may do cooperative advertising with other Crawlspace Medic franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–29)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, Crawlspace Medic is not obligated to spend any amount on advertising in a franchisee's specific area or territory. The franchisee is responsible for local advertising placement.
However, franchisees are required to spend a minimum of $5,000 in Market Introduction advertising and promotional activities during the 60 days prior to and 90 days following the opening of their Crawlspace Medic business. Additionally, franchisees must spend a minimum of $5,000 per quarter on local advertising, and all advertising materials must be approved by Crawlspace Medic.
Franchisees are also required to contribute to the Brand Fund, which is 1% of weekly Gross Revenues, and may increase to 2% with reasonable notice. Crawlspace Medic reserves the right to use these Brand Fund contributions to place advertising in national, regional, or local media, but they are not obligated to place advertising in any particular area, including the franchisee's territory.