What is the consequence if a Crawlspace Medic franchisee fails to allow electronic funds transfers?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
17.2.21. has insufficient funds to honor a check or electronic funds transfer two (2) or more times within any consecutive twelve (12)-month period;
17.3.
Curable Defaults.
Franchisee shall be deemed to be in material default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, if Franchisee fails to cure the default within the time period set forth in this Section 17.3, effective immediately upon notice to Franchisee, if Franchisee, or any Principal, as the case may be:
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, if a franchisee has insufficient funds to honor a check or electronic funds transfer two or more times within any consecutive 12-month period, it constitutes a material default. This is outlined in Section 17.2.21 of the franchise agreement.
This type of default is considered non-curable under Sections 17.2.20 and/or 17.2.21. This means that Crawlspace Medic, at its option, can terminate the agreement and all rights granted to the franchisee immediately upon notice, without providing any opportunity to correct the issue.
For a prospective Crawlspace Medic franchisee, this underscores the importance of maintaining sufficient funds and managing finances carefully to avoid multiple instances of insufficient funds for payments. The consequence of such defaults is severe, leading to potential termination of the franchise agreement.