Does Crawl Space Ninja have an obligation to grant me the right to establish additional outlets?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
u do not identify a site within this time period, we may terminate the Franchise Agreement.
We may, but have no obligation to, consider granting to you the right to establish additional Crawl Space Ninja outlets under other franchise agreements if you are in compliance with the Franchise Agreement and propose to open another Crawl Space Ninja outlet in an area and at a location we approve. The Franchise Agreement grants you no options, rights of first refusal or similar rights to acquire additional franchises.
Multi-Territory Addendum
During the term of the Multi-Territory Addendum, Franchisor will not open or operate, or license any third party the right to open or operate, any Franchised Business within each of your Territories. You will not have any additional territorial rights within the Territories under
the Multi-Territory Addendum other than the rights you were granted within any Territory under a valid and existing Franchise Agreement for that Territory.
In order to exercise your right to operate in any additional Territory pursuant to a Multi-Territory Addendum you enter into with us, you must: (i) sign our then-current form of franchise agreement to govern the Franchised Business's operation in that Territory and comply with the same; (ii) pay the applicable Multi-Territory Fee upon entering into the Multi-Territory Addendum, and (iii) complete, along with any individuals or other personnel required, the Initial Training Program for the Franchised Business.
If we grant you the right to operate in multiple Territories, you will be required to have, at a minimum, one (1) salesperson and one (1) customer service representative per Territory. You must also secure a separate office space located within each Territory. We must approve the location of each Premises from which you will operate the Franchised Business in those additional Territories. If you are granted the right to operate in two (2) or more Territories, then you will be required to lease or purchase a second service vehicle no later than six (6) months following the execution of the Multi-Territory Addendum.
Reserved Rights
We reserve all rights not expressly granted in the Franchise Agreement. For example, we or our affiliates may own, operate, or authorize others to own or operate Crawl Space Ninja outlets outside of the Territory and may operate other kinds of businesses within the Territory. Although we do not currently do so and have no plans to do so, we and our affiliates may own, acquire, conduct, or authorize others to conduct, any form of business at any location selling any type of product or service not offered under the Marks, including a product or service similar to those you will sell at your Franchised Business. We reserve the right to merge with, acquire, or be acquired by, an existing competitive or noncompetitive franchise network, chain, or other business; however, we will not convert any acquired business in your Territory to a franchise using our primary trademarks during the Term of your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 31–34)
What This Means (2024 FDD)
According to the 2024 Crawl Space Ninja Franchise Disclosure Document, Crawl Space Ninja is not obligated to grant franchisees the right to establish additional outlets. However, Crawl Space Ninja may consider granting the franchisee the right to establish additional Crawl Space Ninja outlets under other franchise agreements if the franchisee is in compliance with the Franchise Agreement and proposes to open another Crawl Space Ninja outlet in an area and at a location Crawl Space Ninja approves. The Franchise Agreement grants franchisees no options, rights of first refusal or similar rights to acquire additional franchises.
If Crawl Space Ninja grants a franchisee the right to operate in multiple Territories, the franchisee will be required to have, at a minimum, one salesperson and one customer service representative per Territory. Franchisees must also secure a separate office space located within each Territory, and Crawl Space Ninja must approve the location of each Premises from which the franchisee will operate the Franchised Business in those additional Territories. If a franchisee is granted the right to operate in two or more Territories, then they will be required to lease or purchase a second service vehicle no later than six months following the execution of the Multi-Territory Addendum.
Crawl Space Ninja reserves all rights not expressly granted in the Franchise Agreement. For example, Crawl Space Ninja or its affiliates may own, operate, or authorize others to own or operate Crawl Space Ninja outlets outside of the Territory and may operate other kinds of businesses within the Territory. Crawl Space Ninja and its affiliates may own, acquire, conduct, or authorize others to conduct, any form of business at any location selling any type of product or service not offered under the Marks, including a product or service similar to those franchisees will sell at their Franchised Business. Crawl Space Ninja reserves the right to merge with, acquire, or be acquired by, an existing competitive or noncompetitive franchise network, chain, or other business; however, Crawl Space Ninja will not convert any acquired business in a franchisee's Territory to a franchise using their primary trademarks during the Term of the Franchise Agreement.