How often is the Crawlspace Medic Brand Fund Contribution calculated?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor reserves the right, in Franchisor's sole discretion and at any time and from time to time, to increase the amount of the Brand Fund Contribution to two percent (2%) of the Gross Revenue generated monthly.
Payments will be made in the same manner and time as the Royalty Fees.
If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.2 and 6.3 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable.
Franchisor shall reconcile amounts when Gross Revenues are reported.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the Brand Fund contribution is calculated based on a percentage of Gross Revenue generated monthly. The Franchisor has the right to increase the Brand Fund Contribution to 2% of the Gross Revenue generated monthly.
The Brand Fund contributions are to be paid at the same time and in the same manner as the royalty fees. If a Crawlspace Medic franchisee fails to report Gross Revenues in a timely manner, the franchisee will be charged 120% of the last Brand Fund contribution payable, in addition to late fees and interest.
The Franchisor will reconcile the Brand Fund contribution amounts when Gross Revenues are reported. This reconciliation ensures that the contributions are accurately calculated and aligned with the actual revenue generated by the Crawlspace Medic franchise each month.