What are the Crawlspace Medic developer's obligations upon termination or expiration of the Development Agreement?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.3.2 Upon the expiration or earlier termination of this Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, Developer shall not, either directly or indirectly, for himself or herself or through, on behalf of or in conjunction with any person or entity (i) divert, or attempt to divert, any business or customer of Developer's Crawlspace Medic outlets or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; or (ii) participate as an owner, partner, director, officer, employee, consultant or agent or
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the developer has specific obligations regarding non-competition and confidential information both during the term of the Development Agreement and after its expiration or termination. During the agreement, the developer cannot divert business from Crawlspace Medic outlets, participate in similar crawlspace or basement service businesses, or act in a way that harms the goodwill associated with the Crawlspace Medic brand.
Specifically, for a period of 24 months after the agreement's expiration or termination, the developer is restricted from diverting business or customers from Crawlspace Medic outlets to competitors, or participating as an owner, partner, director, officer, employee, consultant, or agent in any similar crawlspace or basement service business. These restrictions are put in place because the developer gains access to valuable training, trade secrets, and confidential information that provide a competitive advantage within the crawlspace service industry.
The Development Agreement emphasizes the importance of protecting Crawlspace Medic's confidential information, which includes methods, processes, customer lists, vendor partnerships, sales and technical data, financial information, software, and other proprietary details. The developer is obligated to safeguard this information and prevent its unauthorized disclosure or use, even after the agreement ends. This obligation to protect confidential information survives the termination or transfer of the agreement and remains perpetually binding on the developer.