What is the Crawlspace Medic developer's obligation regarding the Mandatory Development Schedule?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Developer hereby acknowledges and agrees that the training Developer receives pursuant to the initial Franchise Agreement executed concurrently with this Agreement is sufficient to allow Developer to construct, equip, open and operate each of Developer's Crawlspace Medic outlets in the Development Area.
5.2 Mandatory Development Schedule.On a multiple store development agreement, the second location must be open within 1 year of the opening of the first location and all additional locations must be open at a minimum of every year thereafter until the development agreement has been satisfied. Consideration will be granted if there is a natural disaster, imposed government restrictions, or other uncontrollable acts of nature which strongly 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 Crawlspace Medic's 2024 Franchise Disclosure Document, a developer with a multiple store development agreement is obligated to open their second location within one year of opening the first. All additional locations must then be opened at a minimum of every year thereafter until the development agreement is fulfilled.
Consideration for exceptions to this schedule may be granted if there is a natural disaster, imposed government restrictions, or other uncontrollable acts of nature that strongly inhibit the franchisee from satisfying the requirement. To be considered, the franchisee must submit a written request for a time extension to the franchisor within 30 days prior to the year deadline. The franchisor then has 10 days to respond in writing as to whether the request will be granted.
Furthermore, upon signing the Development Agreement and the initial Franchise Agreement, the developer must execute an additional Franchise Agreement for the second Crawlspace Medic outlet upon the execution of a lease. This process is repeated for each subsequent outlet to be developed, ensuring that each new location is formally agreed upon with an additional Franchise Agreement. If Crawlspace Medic determines that a physical location is not required for each Franchise Agreement, the Mandatory Development Schedule will refer to the date the franchisee begins operating.