Under what condition can a Crawlspace Medic franchisee include charitable contributions in their local advertising expenditures?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.2.2. Within ten (10) business days of Franchisor's request, Franchisee shall provide a quarterly expenditure report accurately reflecting Franchisee's Local Advertising expenditures for the preceding quarterly period. The following costs and expenditures incurred by Franchisee shall not be included in Franchisee's expenditures on Local Advertising for purposes of this Section, unless approved in advance by Franchisor in writing: (i) incentive programs for employees or agents of Franchisee; (ii) research expenditures; (iii) salaries and expenses of any of Franchisee's personnel to attend advertising meetings, workshops or other marketing activities; (iv) charitable, political or other contributions or donations.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, franchisees are generally not allowed to include charitable contributions or donations as part of their local advertising expenditures. Crawlspace Medic requires franchisees to spend a minimum of $5,000 per quarter on local advertising, but certain costs are excluded from this calculation.
Specifically, incentive programs for employees, research expenditures, salaries/expenses for personnel attending advertising meetings, and charitable/political contributions cannot be included unless the franchisee obtains prior written approval from Crawlspace Medic. This means that if a franchisee wishes to incorporate a charitable donation into their local advertising strategy and have it count towards their $5,000 minimum, they must first seek and receive written permission from Crawlspace Medic.
This requirement gives Crawlspace Medic control over how franchisees allocate their advertising funds, ensuring that the spending aligns with the brand's overall marketing strategy. It also prevents franchisees from using charitable contributions as a way to fulfill their advertising obligations without actually promoting the business effectively. Franchisees should be aware of this restriction and plan their local advertising budgets accordingly, seeking approval for any non-traditional advertising expenses they wish to include.