In the Crawlspace Medic agreement, who is designated as the 'Developer'?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, the parties, in consideration of the promises, undertakings and commitments of each party to the other set forth herein, and intending to be legally bound hereby, mutually agree as follows:
1 RECITATIONS. The Recitations set out above form part of this Agreement.
2 GRANT OF DEVELOPMENT RIGHTS.
- 2.1 Grant.
Franchisor hereby grants to Developer, and the Developer hereby accepts from the Franchisor, on the terms and conditions set forth in this Agreement, which includes, but is not limited to, the execution of a Franchise Agreement pursuant to Section 4.1 hereof, the right to develop, construct, open and operate one (1) Crawlspace Medic outlet within the Development Area set forth in Attachment 3.
Developer shall be granted rights to establish additional Crawlspace Medic outlets in the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule set forth in Section 5.2 hereof, subject to Developer's full compliance with all conditions precedent to the grant of such rights outlined below, which rights shall be exercised in accordance with Section 4.1 hereof.
- 2.2 Reservation of Rights.
Notwithstanding the provisions of Section 2.1 above, 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.
By way of example only, Franchisor reserves the rights to offer (i) other products or services not offered under the Marks, (ii) other crawlspace or basement care 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 Crawlspace Medic 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the 'Developer' refers to the franchisee who is granted the rights to develop, construct, open, and operate Crawlspace Medic outlets within a specific development area. This designation is outlined in the Development Agreement, where the franchisor grants these rights to the developer, who in turn accepts them based on the terms and conditions set forth in the agreement. The developer's rights are contingent upon the execution of a Franchise Agreement, as detailed in the FDD.
The agreement specifies that the developer may be granted rights to establish additional Crawlspace Medic outlets within the designated development area, up to the total number outlined in the Mandatory Development Schedule. However, this is subject to the developer's full compliance with all conditions precedent to the grant of such rights. This means the developer must meet certain obligations and requirements to continue expanding their Crawlspace Medic business within the agreed-upon territory.
The FDD also clarifies that Crawlspace Medic reserves certain rights within the territory, including the ability to offer other products or services not offered under the Crawlspace Medic brand, explore other crawlspace or basement care concepts, and utilize alternate distribution channels such as the Internet. The developer will not receive compensation for Crawlspace Medic's sales through these alternate distribution channels within the territory. This is a standard practice in franchising, where the franchisor retains control over certain aspects of the brand and its distribution methods.