Does this agreement survive the termination of the Crawlspace Medic Franchise Agreement?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
s default, including costs in connection with collection of any amounts owed to Franchisor and/or enforcement of Franchisor's rights under this Agreement.
18. POST-TERMINATION
- 18.1. Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
- 18.1.1. immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Crawlspace Medic owner, franchisee or licensee;
- 18.1.2. immediately and permanently cease to use the Marks, any imitation of any Mark, Franchisor's designs, copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests an association with Franchisor, Licensor, or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
- 18.1.3. take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation, which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
- 18.1.4. promptly pay all sums owing to Franchisor and its affiliates. Such sums shall include all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of any default by Franchisee. The payment obligation herein shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, fixtures, and inventory owned by Franchisee and located at the Franchised Business location at the time of default;
- 18.1.5.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, several obligations survive the termination of the Franchise Agreement. Upon termination or expiration of the agreement, all rights and licenses granted to the franchisee immediately terminate. The franchisee must cease operating the franchised business and cannot identify themselves as a current Crawlspace Medic owner or franchisee.
Specifically, the franchisee must immediately stop using the Crawlspace Medic marks, designs, copyrighted material, and other intellectual property. This includes refraining from using any trade names or symbols that suggest an association with Crawlspace Medic. The franchisee is required to remove all signs, advertising materials, and stationery displaying the Crawlspace Medic marks.
Additionally, for 24 months after the termination or transfer of the agreement, the franchisee and its principals are restricted from engaging in activities that could harm the Crawlspace Medic business. This includes diverting customers to competitors, participating in a crawlspace or basement service business within 25 miles of the territory or any Crawlspace Medic location, and soliciting employees of Crawlspace Medic. These post-termination obligations ensure the protection of Crawlspace Medic's brand and business interests.