How often is the Crawlspace Medic Continuing Royalty Fee collected?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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ITEM 6: OTHER FEES
| Type of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fee2 | Six Percent (6%) of Gross Revenues per week. | Royalties are collected weekly via ACH. | Gross Revenues are defined in Note 2 below. Royalties are currently paid directly to us. |
| Brand Development Fund Contribution3 | Up to 2% of Gross Revenues. Currently Brand Fund Contribution is 1% of Gross Revenues per week | Weekly via ACH at the same time as the Royalty. | Brand Fund Contributions are paid directly to the Brand Fund. |
| Technology Fee4 | 0.5% of Gross Revenue Per Unit | Weekly via ACH at the same time as the Royalty. |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Continuing Royalty Fee is collected weekly. The royalty is six percent of gross revenues per week. These royalties are collected weekly via ACH, or Automated Clearing House, which is an electronic funds transfer system. The FDD specifies that royalty payments are due and paid each Wednesday for the previous week's revenues.
Franchisees should note that consistently paying royalties on time is critical. The FDD states that if a franchisee fails to pay the Continuing Royalty Fee when due, Crawlspace Medic may charge a $100 late fee for each late submission, in addition to interest charges.
Weekly royalty payments are less common than monthly payments in the franchise industry. Franchisees must ensure they have sufficient cash flow to meet this weekly obligation. Paying via ACH simplifies the payment process, but franchisees must still accurately track and report their gross revenues each week to ensure correct royalty payments.