Does the Crawlspace Medic agreement bind the successors and assigns of the franchisor?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
SECTION VI ADDITIONAL PROVISIONS
- 6.1. This Agreement shall run with the land and be binding upon the parties hereto and their heirs, successors, assigns, executors and administrators and representatives. The rights and obligations herein contained shall continue, notwithstanding changes in the persons or entity that may hold any leasehold or ownership in the land or building of which the Premises forms a part.
- 6.2. Franchisor may assign its rights under this Agreement, without the consent of Landlord, in connection with any transfer of its rights as franchisor of the Crawlspace Medic franchise system.
- 6.3. Franchisor or its designee may (but is not required to) enter the Premises to make any modification or alteration necessary to protect its system and the proprietary trademarks (including, but not limited to, removal of signs and materials which contain the proprietary trademarks or the
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the franchise agreement is binding upon the successors and assigns of the franchisor. Specifically, Section VI of the agreement states that the agreement runs with the land and is binding upon the parties, their heirs, successors, assigns, executors, administrators, and representatives. This means that if Crawlspace Medic is sold or its assets are transferred, the new owner or entity is obligated to uphold the terms of the existing franchise agreements.
This provision offers a level of security for the franchisee. If Crawlspace Medic were to be acquired by another company, the franchisee's rights and obligations under the franchise agreement would continue under the new ownership. This includes the territory rights, the term of the agreement, and any other stipulations outlined in the contract.
However, it is important to note that while the agreement is binding, Crawlspace Medic retains certain rights, such as the ability to assign its rights under the agreement without the landlord's consent in connection with any transfer of its rights as franchisor. Additionally, Crawlspace Medic or its designee may enter the premises to make modifications to protect its system and trademarks or to cure any default under the Franchise Agreement or Lease.