factual

When is the Testing or Supplier Approval Fee due for a Crawlspace Medic franchise?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

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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 fees to which we are entitled.
Indemnification10 The amount of any claim, liability or loss we incur from your Franchised Business. As incurred Payable to us.
Reimbursement of Costs and Expenses11 Costs and expenses. As Incurred Payable to us.
Management Fee 10% of Gross Sales in the event we must operate franchise due to death, disability, etc. Plus our expenses Weekly Payable to us.
Post-Termination or Post-Expiration Expenses12 Costs and expenses As incurred Reimbursement of our post termination or post-expiration expenses is paid to us.
Testing or Supplier Approval Fee $500 plus any travel expenses associated with testing or approval Upon request Testing or Supplier Approval fees are paid to us.
Reimbursement of legal fees and expenses Our costs and expenses, including but not limited to attorneys' fees, incurred for your failure to pay amounts when due or failure to comply in any way with the Franchise Agreement.

Source: Item 6 — OTHER FEES (FDD pages 10–16)

What This Means (2024 FDD)

According to the 2024 Crawlspace Medic Franchise Disclosure Document, the Testing or Supplier Approval Fee is due upon request. This fee amounts to $500, in addition to any travel expenses associated with the testing or approval process.

This means that if a Crawlspace Medic franchisee wants to use a new supplier or test a new product, Crawlspace Medic may require them to pay this fee to evaluate and approve the supplier or product. The franchisee is responsible for not only the $500 fee but also any travel expenses Crawlspace Medic incurs during the evaluation.

It is important for prospective Crawlspace Medic franchisees to factor in this potential expense when considering their operating costs, especially if they anticipate needing to source materials or products from various suppliers or wanting to introduce new offerings that require franchisor approval. Understanding the circumstances under which this fee is charged and budgeting accordingly can help avoid unexpected financial burdens.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.