What is the Crawlspace Medic developer's obligation regarding the operation of franchised businesses?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Further, Developer acknowledges and agrees that Developer shall not receive any initial training related to each additional Crawlspace Medic outlet. Developer hereby waives all obligations by Franchisor to provide any training to Developer contained in each Franchise Agreement, other than the initial Franchise Agreement executed concurrently with this Agreement, by and between Franchisor and Developer. 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. Notwithstanding the foregoing, Developer shall open the Crawlspace Medic outlets in accordance with the following schedule:
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, a developer who signs a multi-unit development agreement is obligated to open the second location within one year of opening the first. All additional locations must be opened at a minimum of every year thereafter until the development agreement is fulfilled.
Consideration for an extension 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 this requirement. All time extension requests must be submitted in writing to Crawlspace Medic within 30 days prior to the year deadline for consideration. Crawlspace Medic will then have 10 days to respond in writing as to whether the request for extension will be granted.
Subsequent to the Developer's signing of the Development Agreement and the initial Franchise Agreement, and provided that all conditions are satisfied or waived, upon the execution of a lease for the first Crawlspace Medic outlet, the Developer must 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 are satisfied or waived, upon the execution of a lease for each subsequent Crawlspace Medic outlet to be developed by the Developer, the Developer must execute an additional Franchise Agreement for the development of the next Crawlspace Medic outlet to be opened under the Mandatory Development Schedule.
The Developer acknowledges that they will not receive any initial training related to each additional Crawlspace Medic outlet, waiving all obligations by Crawlspace Medic to provide any training contained in each Franchise Agreement, other than the initial Franchise Agreement executed concurrently with the Development Agreement. The training received pursuant to the initial Franchise Agreement is considered sufficient to allow the Developer to construct, equip, open, and operate each of their Crawlspace Medic outlets in the Development Area.