Who bears the expense of Trade Dress Modifications for a Crawlspace Medic franchise?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.4.2.
As a condition to renew this Agreement, Franchisee shall refurbish the Franchised Business location or vehicle at Franchisee's sole expense, as required by Franchisor, to conform to Trade Dress Modifications.
This includes, without limitation, structural changes, remodeling, redecoration, and modifications to existing improvements.
Notwithstanding the foregoing restriction on the frequency of Trade Dress Modifications, Franchisee, upon notice by Franchisor and in accordance with Section 14.6 hereof, shall immediately discontinue the use of any Mark that is no longer desirable or available to Franchisor and substitute a different Mark or Marks as Franchisor directs.
- 9.4.3.
Franchisee will accept use and display any such Trade Dress Modifications as if they were a part of this Franchise Agreement at the time of execution hereof.
- 9.5.
No Liability/Waiver of Claims.
Franchisor shall not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any of the modifications, including Trade Dress Modifications, required by this Article 9.
Franchisee hereby covenants not to commence or join in any litigation or other proceeding against Franchisor or any third party, complaining of any such or seeking expenses, losses or damages caused thereby.
Further, Franchisee expressly waives any claims, demands or damages arising from or related to the modifications contemplated by this Article 9, including, without limitation, any claim of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the franchisee is responsible for the expenses associated with trade dress modifications. Specifically, as a condition of renewing the franchise agreement, the franchisee must refurbish the business location or vehicle to comply with any trade dress modifications required by Crawlspace Medic, and this is done at the franchisee's sole expense. These modifications can include structural changes, remodeling, redecoration, and modifications to existing improvements.
Crawlspace Medic is not liable to the franchisee for any expenses, losses, or damages that the franchisee incurs as a result of these required modifications. The franchisee also agrees not to initiate any legal proceedings against Crawlspace Medic or any third party regarding these modifications, and waives any claims for breach of contract, breach of fiduciary duty, fraud, or breach of the implied covenant of good faith and fair dealing related to the modifications.
This means that a prospective Crawlspace Medic franchisee should be prepared to invest additional capital to keep their location or vehicle aligned with the brand's current image standards, particularly when renewing their franchise agreement. This is a fairly standard practice in franchising, as franchisors need to maintain brand consistency across all locations, but the franchisee bears the financial risk of these updates.