How does a Crawlspace Medic developer validly exercise their development rights?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
5.1 Valid Exercise. Developer shall exercise the development rights granted hereunder only by entering into a separate Franchise Agreement with Franchisor for each Crawlspace Medicoutlet for which a development right is granted. Developer shall execute and deliver to Franchisor, concurrently with the execution and delivery of this Agreement, Franchisor's current form of Franchise Agreement for the first Crawlspace Medic outlet to be established by Developer pursuant to the Mandatory Development Schedule. For each subsequent Crawlspace Medic outlet to be established hereunder, Developer shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Developer together with Franchisor's then-current Franchise Disclosure Document. 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, a developer can exercise their development rights by entering into a separate Franchise Agreement with Crawlspace Medic for each outlet they have the right to develop. The developer must execute and deliver Crawlspace Medic's current form of Franchise Agreement for the first outlet concurrently with the execution and delivery of the Multi-Unit Development Agreement.
For each subsequent Crawlspace Medic outlet, the developer must execute and deliver Crawlspace Medic's then-current form of Franchise Agreement, which will be presented along with the then-current Franchise Disclosure Document. The FDD notes that the current form of Franchise Agreement may differ from previous versions, but the initial franchise fee for each additional outlet will be the amount set forth in Section 4.1 of the agreement.
In simpler terms, to open each Crawlspace Medic location under a development agreement, the developer must sign a new franchise agreement. The initial franchise agreement is signed when the development agreement is made, and subsequent agreements are signed as each new location is developed. The franchise agreement might have updated terms each time, but the initial franchise fee remains consistent.