Is the Crawlspace Medic agreement binding on 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.
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 generally binding upon the successors and assigns of both parties. Specifically, for agreements related to land, the agreement runs with the land and binds the parties, their heirs, successors, assigns, executors, administrators, and representatives. This ensures that the obligations and rights continue even if there are changes in ownership or leasehold of the property.
Crawlspace Medic also retains the right to assign its rights under the agreement without needing the landlord's consent, particularly if it involves transferring the franchisor's rights within the Crawlspace Medic franchise system. This provides Crawlspace Medic with flexibility in managing and transferring its franchise operations.
However, the agreement also specifies conditions where the franchisee's rights and duties are personal and require the franchisor's approval for any transfers. This indicates that while Crawlspace Medic's obligations can be transferred, the franchisee's ability to transfer the agreement is restricted and subject to the franchisor's discretion.