What exhibit in the Crawlspace Medic Franchise Agreement contains the form for the General Release?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
--------------------------------| | | | Franchise | | | | Provision | Agreement | Summary | | m. | Conditions for franchisor approval of a transfer | Section 16.3 and 16.4 | Conditions include: our decision not to exercise our right of first refusal; transferee meets our then-current standards for qualifying franchisees; transferee signs our then-current form of Franchise Agreement, which may have materially different terms from your Franchise Agreement; transferee successfully complete our Initial Training Program; you have paid us and third-party creditors all amounts owed; you and the transferee sign a General Release in the form of Exhibit C to the Franchise Agreement; you shall subordinate any claims you have against the transferee to us; you will indemnify us for a period of 3 years following the transfer; our approval of the material terms and conditions of the transfer; payment of a transfer fee equal to sixty percent (60%) of the then current franchise fee for a transfer to an individual or entity that is new to the brand, or forty percent (40%) of the then current franchise fee for a transfer to an existing owner within the system, or $1,500 for a transfer between existing owner or adding a new shareholder that does not change the majority ownership, or no payment for a transfe
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the General Release form is found in Exhibit C of the Franchise Agreement. This is relevant when a franchisee transfers their franchise to another party.
Specifically, both the transferring franchisee and the new transferee must sign this General Release as a condition for Crawlspace Medic to approve the transfer. This indicates that the General Release likely covers any potential liabilities or claims between the parties involved in the transfer, ensuring a clean break and protecting Crawlspace Medic from future disputes related to the transfer.
Prospective Crawlspace Medic franchisees should carefully review Exhibit C to understand the full scope of the General Release. Understanding the conditions under which a General Release is required, and the implications of signing such a release, is crucial for any franchisee considering a future transfer of their business.