How are payments to the Crawlspace Medic Brand Fund made in relation to Royalty Fees?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.1.4 Method of Payment.
Franchisee shall pay the Royalty and Brand Fund payment, as defined and more particularly described in Article 13, directly to the Franchisor via ACH on the same day they submit Gross Revenue Reports for the week.
At Franchisor's request, Franchisee must execute documents that allow Franchisor to automatically take the Royalty Fee and Brand Fund Contribution due as well as other sums due Franchisor, from business bank accounts via electronic funds transfers.
Franchisee's failure to allow electronic funds transfers on an ongoing basis is a material breach of this Agreement.
- 6.2.
Late Fee.
If the Royalty Fee, Brand Fund Contribution, or any Gross Revenue Reports are not received by Franchisor as required by this Agreement, Franchisee shall pay to Franchisor, in addition to the overd
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, payments to the Brand Fund are made in conjunction with royalty fees. Specifically, franchisees must pay both the royalty and Brand Fund payment directly to Crawlspace Medic via ACH (Automated Clearing House) on the same day they submit their Gross Revenue Reports for the week.
Crawlspace Medic can request that franchisees execute documents that allow the franchisor to automatically deduct the Royalty Fee, Brand Fund contribution, and any other due sums from the franchisee's business bank accounts through electronic funds transfers. Failing to allow these electronic fund transfers on an ongoing basis constitutes a material breach of the Franchise Agreement.
If a franchisee fails to submit the Royalty Fee, Brand Fund contribution, or Gross Revenue Reports as required by the agreement, Crawlspace Medic will charge a late fee in addition to any overdue amounts. This integrated payment system ensures that Crawlspace Medic receives both royalty and Brand Fund contributions in a timely and consistent manner, while also providing a mechanism for addressing late or missing payments.