When does a Crawlspace Medic developer execute an additional Franchise Agreement for subsequent outlets?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
inhibit the franchisee from satisfying this requirement. All time extension requests must be submitted in writing to the franchisor within 30 days prior to the year deadline for consideration. The franchisor will have 10 days to respond in writing as to whether the request for extension will be granted. Subsequent to Developer's signing of this Agreement and the initial Franchise Agreement, and provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for Developer's first Crawlspace Medic outlet, Developer shall execute an additional Franchise Agreement for the development of the second Crawlspace Medic outlet to be opened under the Mandatory Development Schedule. Provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for each subsequent Crawlspace Medic outlet to be developed by Developer, Developer shall execute an additional Franchise Agreement for the development of the next Crawlspace Medic outlet to be opened under the Mandatory Development Schedule.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, a developer is required to execute an additional Franchise Agreement for each subsequent Crawlspace Medic outlet they plan to develop. This occurs upon the execution of a lease for each subsequent outlet, provided that all conditions outlined in Section 5.4 of the agreement are either satisfied or waived. These conditions include the developer requesting the current Franchise Disclosure Document, submitting all required information and documents, providing requested financial statements, and meeting Crawlspace Medic's financial criteria for multiunit franchisees.
This requirement ensures that Crawlspace Medic maintains control over the expansion and quality of its franchise network. By requiring a new agreement for each location, Crawlspace Medic can assess the developer's ongoing compliance and financial stability. It also allows Crawlspace Medic to update the terms and conditions of the franchise agreement to reflect changes in the market or the franchise system.
For a prospective Crawlspace Medic franchisee, this means that opening multiple locations involves more than just the initial agreement. Each new location requires a separate agreement, and the franchisee must continue to meet Crawlspace Medic's standards to secure those agreements. This could involve additional scrutiny and paperwork for each new location, but it also provides an opportunity to renegotiate terms or address any specific concerns related to the new location.
It is also important to note that the then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof.