Are a Crawlspace Medic Developer's rights and duties under the Agreement considered personal?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.2 Restrictions on Transfers by Developer. Developer's rights and duties under this Agreement are personal to Developer, and Franchisor has made this Agreement with Developer in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Developer. Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval. Franchisor may void any transfer made without such approval.
- 6.3 Transfers by Developer. Developer shall not directly or indirectly sell, assign, transfer, give, devise, convey or encumber this Agreement or any right granted or interest herein or hereunder (a "Transfer") or suffer or permit any such assignment, transfer, or encumbrance to occur by operation of law unless Developer first obtains the written consent of Franchisor, which Franchisor may or may not grant in Franchisor's sole discretion, and subject to the following:
- 6.3.1 The proposed transferee must be an individual of good moral character and otherwise meet Franchisor's then-applicable standards for multi-unit franchisees.
- 6.3.2 The transferee must have sufficient business experience, aptitude and financial
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a Developer's rights and duties under the Development Agreement are considered personal. The agreement is made with the Developer based on the franchisor's assessment of their individual and collective character, skills, aptitude, attitude, business ability, and financial capacity. This means that the franchisor is specifically choosing to work with the individual Developer based on their perceived qualities and capabilities.
Because the agreement is personal, the Developer cannot transfer the agreement or any rights or interests without Crawlspace Medic's prior written approval. Crawlspace Medic may choose to deny a transfer at their discretion. If a Developer attempts to transfer the agreement without approval, Crawlspace Medic has the right to void the transfer.
To gain approval for a transfer, the proposed transferee must meet Crawlspace Medic's standards for multi-unit franchisees, including demonstrating good moral character, sufficient business experience, aptitude, and financial resources to operate multiple Crawlspace Medic outlets and comply with the Development Agreement. This ensures that any new Developer taking over the agreement meets the franchisor's requirements for success within the Crawlspace Medic system.