What are the ongoing fees for a Crawlspace Medic franchise (Item 6) and how do they relate to the franchisee's gross revenues?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ghts to Franchisor's website and Franchisee will lose all rights to such link to Franchisee's location upon expiration or termination of this Agreement for any reason.
- 12.3.7. Franchisee shall pay all fees and expenses for technology required by this Agreement, including but not limited to, the costs of computer hardware and software, regularly recurring fees for software and Internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform. Currently this fee is 0.5% of Gross Revenue per unit per month.
- 12.4. Safety and Security of Premises. Franchisee is solely responsible for the safety and security of the Franchised Business location and vehicle(s), Franchisee's personnel, customers, agents and the general public. All matters of safety and security are within Franchisee's discretion and control, and Franchisee's indemnification obligations set forth in Section 15.6 hereof shall apply to any claims made against Franchisor regarding safety or security.
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are required to pay certain ongoing fees. One such fee is related to technology, where franchisees must pay all fees and expenses for required technology, including computer hardware and software costs, recurring software and Internet access fees, license fees, help desk fees, and licensing or user-based fees for a franchise portal or benchmarking platform.
Specifically, Crawlspace Medic franchisees must pay 0.5% of their Gross Revenue per unit per month for technology. This means that a franchisee's monthly payment will fluctuate depending on their sales performance. For example, a location generating $50,000 in gross revenue in a given month would pay $250 for this technology fee.
In addition to the technology fee, if Crawlspace Medic conducts an audit of a franchisee's books and records and it is determined that the franchisee underestimated their Gross Revenues in any report by more than two percent (2%), the franchisee must pay the underreported amount plus interest within fifteen (15) days of written notice.