To whom is the Crawlspace Medic Technology Fee payable?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Technology Fee is payable to the franchisor. The Technology Fee is 0.5% of Gross Revenue per unit and is collected weekly via ACH at the same time as the Royalty fee.
This means that as a Crawlspace Medic franchisee, you will be required to remit 0.5% of your gross revenue to the franchisor on a weekly basis for technology-related expenses. This fee is in addition to other fees such as the Continuing Royalty Fee and Brand Development Fund Contribution, which are also collected weekly.
It is important to note that Crawlspace Medic retains the right to increase the Technology Fee and to substitute or add different approved technologies, which the franchisee must use. This means that the franchisee's technology costs could increase over time, and they may be required to adopt new technologies that they were not initially aware of.