How often is the Brand Fund Contribution calculated for a Crawlspace Medic franchise?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is currently required to contribute an amount equal to one percent (1%) of the Gross Revenue generated weekly by Franchisee's Franchised Business to the Brand Development Fund ("Brand Fund Contribution").
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 weekly based on one percent of the Gross Revenue generated by the franchisee's business. However, Crawlspace Medic retains the right to change the calculation frequency to monthly, and increase the contribution to two percent of gross monthly revenue.
The Brand Fund is used for national advertising, marketing, and brand development to maximize public recognition and acceptance of the Crawlspace Medic brand. The funds are intended to enhance the collective success of all franchised businesses operating under the Crawlspace Medic system.
The franchisee is required to make these payments in the same manner and time as the royalty fees. If a franchisee fails to report gross revenues in a timely manner, Crawlspace Medic will collect 120% of the last Brand Fund Contribution payable, in addition to late fees and interest. Crawlspace Medic will reconcile amounts when gross revenues are reported.