What is the duration of the non-compete period for a Crawlspace Medic developer after the termination of the 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, if the Development Agreement is terminated, the developer is subject to a non-compete covenant for 24 months. During this period, the developer is restricted from engaging in activities that could divert business from Crawlspace Medic or compete with it.
Specifically, the developer cannot participate as an owner, partner, director, officer, employee, consultant, or agent in any crawlspace or basement service business within 25 miles of the Territory or any Crawlspace Medic location. This restriction applies whether the involvement is direct or indirect and includes actions taken on behalf of oneself or in conjunction with any other person or entity.
The FDD also states that these non-compete covenants are acknowledged by the developer as fair and reasonable, considering their existing skills, experience, and education. However, if any court deems the time or geographic scope unreasonable, adjustments can be made to ensure enforceability. Crawlspace Medic also retains the right to reduce the scope of the covenant.
A violation of these non-compete terms could result in immediate and irreparable harm to Crawlspace Medic, potentially leading to injunctive relief to prevent the developer from engaging in prohibited conduct. The existence of any claims the developer may have against Crawlspace Medic does not constitute a defense against the enforcement of these covenants.