How often must a Crawlspace Medic franchisee provide a local advertising expenditure report?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.2.2. Within ten (10) business days of Franchisor's request, Franchisee shall provide a quarterly expenditure report accurately reflecting Franchisee's Local Advertising expenditures for the preceding quarterly period. The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (iv) charitable, political or other contributions or donations.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, a franchisee must submit a local advertising expenditure report quarterly, specifically within ten business days of Crawlspace Medic's request. This report should accurately detail the franchisee's local advertising expenditures for the previous quarter.
However, not all costs qualify as local advertising expenditures. Unless Crawlspace Medic provides prior written approval, the franchisee cannot include costs related to employee incentive programs, research expenditures, salaries and expenses for personnel attending advertising meetings, workshops, or other marketing activities, or charitable/political donations in their local advertising expenditure report.
This requirement ensures that Crawlspace Medic franchisees are transparent and accountable regarding their local advertising efforts, allowing Crawlspace Medic to monitor compliance with the minimum spending requirement of $5,000 per quarter. It also gives Crawlspace Medic control over what qualifies as an advertising expense, ensuring that the funds are used effectively to promote the Crawlspace Medic brand locally.