Is the Crawlspace Medic agreement personally binding on the developer's heirs?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.2 Restrictions on Transfers by Developer. Developer's rights and duties under this Agreement are personal to Developer, and Franchisor has made this Agreement with Developer in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Developer. Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval. Franchisor may void any transfer made without such approval.
- 6.3 Transfers by Developer. Developer shall not directly or indirectly sell, assign, transfer, give, devise, convey or encumber this Agreement or any right granted or interest herein or hereunder (a "Transfer") or suffer or permit any such assignment, transfer, or encumbrance to occur by operation of law unless Developer first obtains the written consent of Franchisor, which Franchisor may or may not grant in Franchisor's sole discretion, and subject to the following:
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
Based on the 2024 Crawlspace Medic Franchise Disclosure Document, the agreement outlines specific conditions regarding the transfer of rights and duties, but it does not explicitly state whether the agreement is personally binding on the developer's heirs. The document states that the developer's rights and duties are personal and cannot be transferred without Crawlspace Medic's approval.
Specifically, Section 6.2 notes that the agreement is made in reliance on the developer's individual character, skills, and financial capacity. This suggests that the agreement is designed to be fulfilled by the original developer. Section 6.3 further restricts the transfer of the agreement or any rights within it, requiring the franchisor's written consent for any transfer, sale, or assignment.
While the FDD details transfer restrictions and conditions, it lacks a direct statement about the agreement's enforceability concerning the developer's heirs. A prospective franchisee should seek clarification from Crawlspace Medic regarding the specific terms that would apply in the event of the developer's death or incapacitation to fully understand the obligations and implications for their estate.