factual

Following termination of employment with a Crawlspace Medic franchisee, what is the duration of the non-compete period for a crawlspace or basement service business?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

or indirect inducement or otherwise,

  • (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 substantially similar to the System.
  • b. In further consideration for the disclosure to Covenantor of the Confidential Information and to protect the goodwill and unique qualities of the System, Covenantor further agrees and covenants that, upon the termination of Covenantor's employment or association with Franchisee and continuing for twenty-four (24) months thereafter, Covenantor shall not, for Covenantor 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 Crawlspace Medic System to any competitor, by direct or indirect inducement or otherwise,
    • (ii) participate as an owner, partner, director, officer, employee, or consultant or serve in any other managerial, operational or supervisory capacity in any crawlspace or basement service business within the within twenty-five (25) miles of Franchisee's Territory or any Crawlspace Medic location.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2024 FDD)

According to Crawlspace Medic's 2024 Franchise Disclosure Document, a covenantor (employee) is subject to a non-compete agreement upon termination of employment or association with a Crawlspace Medic franchisee. This non-compete period extends for 24 months. During this time, the covenantor is restricted from engaging in activities that could harm the Crawlspace Medic system.

Specifically, the covenantor cannot divert or attempt to divert business or customers from the Crawlspace Medic system to competitors. They are also prohibited from participating as an owner, partner, director, officer, employee, consultant, or agent in any crawlspace or basement service business. This restriction applies to any business substantially similar to the Crawlspace Medic system.

These restrictions are designed to protect Crawlspace Medic's goodwill and unique qualities by preventing former employees from using confidential information or relationships gained during their employment to compete against the franchise. The agreement also states that the restrictions are deemed reasonable to protect the goodwill or other business interests of Crawlspace Medic.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.