To whom is the Successor Agreement Fee paid for a Crawlspace Medic franchise?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
. |
| Amount | Due Date | Remarks | |
|---|---|---|---|
| Successor Fee9 Agreement | $1,500 | Upon signing a then current form franchise agreement | The Successor Agreement Fee is paid to us, over and above any Royalties, Brand Fund or any other |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Successor Agreement Fee is paid to the franchisor. Specifically, the FDD states that the Successor Agreement Fee is paid to 'us,' which refers to Crawlspace Medic. This fee is in addition to any royalties, brand fund contributions, or other fees that Crawlspace Medic is entitled to.
The Successor Agreement Fee is $1,500 and is due upon signing a then-current form franchise agreement. This fee compensates Crawlspace Medic for the administrative and legal costs associated with preparing and executing a successor franchise agreement.
For a prospective Crawlspace Medic franchisee, this means that if they qualify for and choose to enter into a successor franchise agreement, they will need to pay Crawlspace Medic $1,500 at the time of signing the new agreement. It is important to note that this fee is separate from other ongoing fees such as royalties and brand fund contributions.