When does Crawlspace Medic reconcile Brand Fund Contribution amounts?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor shall reconcile amounts when Gross Revenues are reported.
- 13.3.2.
Franchisor shall direct the Brand Fund and shall have sole discretion to approve or disapprove the creative concepts, materials and media used in such programs and the placement and allocation thereof.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Brand Fund contributions are reconciled when gross revenues are reported. Franchisees are required to make payments in the same manner and time as the royalty fees.
If a Crawlspace Medic franchisee fails to report gross revenues on time, the franchisee will be charged a late fee and interest, and Crawlspace Medic will collect 120% of the last Brand Fund contribution payable.
This reconciliation process ensures that the Brand Fund contributions are accurately aligned with the franchisee's revenue, and that any discrepancies are addressed promptly. Franchisees should ensure timely and accurate reporting of gross revenues to avoid penalties and maintain compliance with the franchise agreement.