What is the duration of the post-employment non-compete covenant for Crawlspace Medic?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.5.2.
Upon the expiration or earlier termination of this Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, Franchisee and Principals, if any, shall not, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Business 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 serve in any other capacity in any crawlspace or basement service business within twenty-five (25) miles of the Territory or any Crawlspace Medic location; or (iii) seek to employ any person who is at that time employed by Franchisor or otherwise induce such person to leave his or her employment or (iv) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or (v) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Crawlspace Medic franchisees.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, both franchisees and developers are subject to a post-term non-compete covenant lasting for twenty-four months. This restriction begins upon the expiration or termination of the Franchise Agreement or the Development Agreement, or in the event of a transfer of the franchise.
During this 24-month period, franchisees and developers are prohibited from engaging in any crawlspace or basement service business within 25 miles of their former territory or any Crawlspace Medic location. This includes acting as an owner, partner, director, officer, employee, consultant, or agent in a similar business. The non-compete aims to prevent franchisees and developers from diverting business or customers from the Crawlspace Medic system to competitors through direct or indirect means.
The Crawlspace Medic agreements state that these non-compete covenants are considered reasonable and do not impose undue hardship, as franchisees and developers possess other skills and experience to derive income from other endeavors. However, if any court deems the time or geographic scope unreasonable, adjustments will be made to ensure enforceability. Crawlspace Medic also retains the right to reduce the scope of the covenant at its discretion with written notice.