What conditions must be satisfied or waived before a Crawlspace Medic developer executes an additional Franchise Agreement?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.4 Conditions to Exercise Developer's Rights. All of the following conditions must be satisfied or waived, in Franchisor's sole discretion, before Franchisor grants Developer the right to develop an additional Crawlspace Medic outlet in accordance with Section 4.1 hereof and pursuant to a Franchise Agreement:
- 5.4.1 Developer shall (i) request Franchisor's then-current Franchise Disclosure Document, (ii) submit to Franchisor all information and other documents requested by Franchisor prior to and as a basis for the issuance of Franchise Agreements in the System, (iii) submit to Franchisor all financial statements reasonably requested by Franchisor, and (iv) satisfy Franchisor's then-current financial criteria for multiunit franchisees.
- 5.4.2 Developer shall be in full compliance with this Agreement, the Mandatory Development Schedule, and all Franchise Agreements with Franchisor and any other agreement with Franchisor or Franchisor's affiliates;
- 5.4.3 Developer has demonstrated the management skills necessary for competent operation, organization, customer service and record keeping of an additional Crawlspace Medic outlet as determined by Franchisor, in Franchisor's sole discretion.
- 5.5 Termination for Failure of Condition. Notwithstanding anything to the contrary contained herein, if Franchisor determines, in Franchisor's sole and absolute discretion, that any condition set forth in Section 5.4 hereof cannot be satisfied, Franchisor may terminate this Agreement upon written notice to Developer. Termination of this Agreement in accordance with this Section 5.5 shall have no effect on the validity of any other agreement between Franchisor and Developer, provided Developer is in full compliance therewith.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, before a developer can execute an additional Franchise Agreement to develop another Crawlspace Medic outlet, several conditions must be met or waived by Crawlspace Medic. These conditions ensure the developer is in good standing and capable of successfully operating additional locations.
First, the developer must request the current Franchise Disclosure Document and submit all required information, financial statements, and documents that Crawlspace Medic requests. The developer must also meet Crawlspace Medic's current financial criteria for multi-unit franchisees. This ensures that the developer is financially stable and capable of supporting additional Crawlspace Medic locations.
Second, the developer must be in full compliance with the Development Agreement, the Mandatory Development Schedule, all existing Franchise Agreements with Crawlspace Medic, and any other agreements with Crawlspace Medic or its affiliates. Finally, the developer must demonstrate the necessary management skills for competent operation, organization, customer service, and record keeping of an additional Crawlspace Medic outlet, as determined solely by Crawlspace Medic. This ensures that the developer has the operational expertise to manage multiple locations effectively.
Crawlspace Medic retains the sole discretion to determine whether these conditions are satisfied or can be waived. If Crawlspace Medic determines that any of these conditions cannot be met, it has the right to terminate the Development Agreement, although this termination will not affect any other agreements between Crawlspace Medic and the developer, provided the developer is in full compliance with those agreements.