Does Crawl Space Ninja reserve the right to acquire, be acquired by, or merge with another company?
Crawl_Space_Ninja Franchise · 2024 FDDAnswer from 2024 FDD Document
s and services from a location within the territory, and will provide services to customers within that territory. Franchisee is prohibited from selling and soliciting customers through alternative distribution channels as more fully specified herein.
- 3.2 Reservation of Rights. Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory. Franchisor reserves the right, without limitation, to offer (i) other products or services not offered under the Marks, (ii) other crawl space, basement, and repair concepts under the Marks or other trademarks, including licensing Franchisor's designs for use in other formats and (iii) products or services through any channel in the Territory other than a dedicated Crawl Space Ninja location, such as the Internet ("Alternate Distribution Channels"). Franchisee will receive no compensation for Franchisor's sales through Alternate Distribution Channels made within the Territory. Franchisor also reserves the right to acquire, be acquired by or merge with another company. Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
3.3 Minimum Performance Requirements. In order to maintain the Territory, Franchisee understands and agrees that they must maintain the following Minimum Performance Requirements for Revenue Per Year of Agreement:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5+ | |
|---|---|---|---|---|---|
| Minimum | $400,000 | $650,000 | $900,000 | $1,150,000 | $1,400,000 |
| Performance | |||||
| Requirement |
Franchisee's failure to meet the Minimum Performance Requirements specified herein shall constitute a material default of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Crawl Space Ninja's 2024 Franchise Disclosure Document, Crawl Space Ninja retains the right to acquire, be acquired by, or merge with another company. This is explicitly stated in Section 3.2 of the franchise agreement, which outlines the franchisor's reservation of rights.
This clause means that Crawl Space Ninja can undergo significant corporate changes, including being bought out by another entity or merging with another company. Such changes could potentially impact the franchise system, including policies, support, and brand direction. However, Section 3.2 also states that the implementation of these rights is not deemed to impair or injure the franchisee's rights outlined in Section 2 of the agreement.
Additionally, Crawl Space Ninja has the right to purchase, merge, acquire, or affiliate with any competitive or noncompetitive franchise network, chain, or business, regardless of location. Crawl Space Ninja can then operate, franchise, or license those businesses under any marks, even within a franchisee's territory. However, Crawl Space Ninja represents that it will not convert any acquired facilities operating within the franchisee's territory to a Crawl Space Ninja franchise during the term of the agreement. If Crawl Space Ninja assigns its rights in the agreement, it is not required to remain in the crawl space encapsulation business or to offer or sell any products or services to the franchisee.