During the term of the Crawlspace Medic franchise agreement, what requirements must be maintained?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
er that revenue does not count toward your Minimum Performance Requirement.
You are required to maintain the following Minimum Performance Requirements for Total Revenue during the term of your franchise agreement.
Year 1 Year 2 Year 3 Year 4 Year 5 Minimum Performance Requirements Revenue Per Year of Agreement $225,000 $350,000 $600,000 $750,000 $900,000
Total Revenue
The revenue that makes up your Minimum Performance Requirement must come from within your protected territory. If you fail to maintain these Minimum Performance Requirements, it is considered a default of your franchise agreement and we have the right to eit
Source: Item 12 — TERRITORY (FDD pages 29–30)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, franchisees must meet specific minimum performance requirements to maintain their territory. These requirements are based on total revenue generated within the protected territory. Failing to meet these minimums can result in territory reduction or franchise termination.
Specifically, the Crawlspace Medic franchisee is required to meet minimum total revenue targets that escalate over the first five years of the agreement. The minimum total revenue requirements are $225,000 in Year 1, $350,000 in Year 2, $600,000 in Year 3, $750,000 in Year 4, and $900,000 in Year 5. These revenue figures must be generated from within the franchisee's protected territory to count toward the minimum performance requirement.
Crawlspace Medic franchisees should be aware that failure to achieve these revenue targets constitutes a default under the franchise agreement. If a franchisee fails to meet the minimum performance requirements, Crawlspace Medic has the right to reduce the size of the territory or terminate the franchise agreement altogether. This underscores the importance of a franchisee's business planning and execution to meet the franchisor's expectations for revenue generation within the defined territory.