Under what condition can a Crawlspace Medic franchisee include research expenditures in their local advertising expenditures?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are generally not allowed to include research expenditures in their local advertising expenditures. Crawlspace Medic requires franchisees to spend a minimum of $5,000 per quarter on local advertising, and the franchisor must approve all advertising materials.
However, there is an exception. A Crawlspace Medic franchisee can include research expenditures as part of their local advertising spend if they receive advance written approval from Crawlspace Medic. Without this written approval, such costs are explicitly excluded from the calculation of the franchisee's local advertising expenditures.
This requirement ensures that Crawlspace Medic maintains control over how advertising funds are spent and that the expenditures align with the brand's overall marketing strategy. It is important for prospective franchisees to understand this policy and factor it into their budgeting and advertising plans. Franchisees should communicate with Crawlspace Medic early in the process if they intend to conduct research and want to include those costs in their local advertising spend to obtain the necessary written approval.