Who is considered a 'Principal' in the context of the continuing obligations outlined in Article 11 of the Crawlspace Medic franchise agreement?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee and each Principal acknowledge and agree that the representations, warranties and covenants set forth in this Article 11 are continuing obligations of Franchisee and each Principal, as applicable, and that
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Article 11 outlines continuing obligations for both the franchisee and each 'Principal.' While the document mentions 'Principals' in several contexts, it does not explicitly define who qualifies as a 'Principal.'
Specifically, the FDD excerpts discuss the ongoing responsibilities of both the franchisee and any 'Principals' concerning representations, warranties, and covenants within Article 11 of the franchise agreement. It states that any failure to comply with these obligations by either the franchisee or a 'Principal' constitutes a material breach of the agreement. Furthermore, both parties are expected to cooperate with Crawlspace Medic in verifying compliance with these obligations.
Because the definition of 'Principal' is not provided in the excerpts, prospective Crawlspace Medic franchisees should seek clarification from the franchisor regarding who is considered a 'Principal' within the context of the franchise agreement. Understanding this term is crucial, as it directly impacts who is bound by the continuing obligations and could be held liable for any breaches of the agreement.