When are Crawlspace Medic royalty payments due?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Royalty payments are due and paid on each Wednesday for the previous week. The Minimum Performance Requirements for revenue per year of agreement follow:
| 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. | Payable to us |
| CSR Fee | 1.5% of Gross Revenue Per Unit | Weekly via ACH at the same time as the Royalty. | This fee is payable to us for CSR Support including phone and webform intake from the corporate office. |
| Late Charge | $100 | As incurred | If you fail to pay us the Continuing Royalty Fee, Brand Fund Fee, or if you fail to submit your Gross Revenue report when due, we may charge you $100 for each late submission in addition to interest charges explained below. |
| Interest | 1.5% per month or highest rate allowed by law | As Incurred | Interest is paid to us from the date of nonpayment or underpayment. |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, royalty payments are due each Wednesday for the previous week. The royalty fee is 6% of gross revenues per week. These royalties are collected weekly via ACH and are paid directly to Crawlspace Medic.
In addition to the continuing royalty fee, Crawlspace Medic franchisees must also pay a Brand Development Fund contribution of up to 2% of gross revenues, though it is currently 1% of gross revenues per week. A technology fee of 0.5% of gross revenue per unit and a CSR fee of 1.5% of gross revenue per unit are also collected weekly via ACH at the same time as the royalty payments.
If a Crawlspace Medic franchisee fails to pay the continuing royalty fee or submit their gross revenue report when due, they may be charged a $100 late fee for each late submission, in addition to interest charges. Interest accrues at a rate of 1.5% per month or the highest rate allowed by law from the date of nonpayment or underpayment.