What form of Franchise Agreement does a Crawlspace Medic developer use for subsequent outlets?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
5.1 Valid Exercise. Developer shall exercise the development rights granted hereunder only by entering into a separate Franchise Agreement with Franchisor for each Crawlspace Medicoutlet for which a development right is granted. Developer shall execute and deliver to Franchisor, concurrently with the execution and delivery of this Agreement, Franchisor's current form of Franchise Agreement for the first Crawlspace Medic outlet to be established by Developer pursuant to the Mandatory Development Schedule. For each subsequent Crawlspace Medic outlet to be established hereunder, Developer shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Developer together with Franchisor's then-current Franchise Disclosure Document. The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, a developer must enter into a separate Franchise Agreement with Crawlspace Medic for each outlet they plan to establish. For the initial Crawlspace Medic outlet, the developer will sign the current form of the Franchise Agreement concurrently with the Multi-Unit Development Agreement.
For each subsequent Crawlspace Medic outlet, the developer is required to execute and deliver Crawlspace Medic's then-current form of Franchise Agreement. This agreement will be presented to the developer along with the then-current Franchise Disclosure Document. It is important to note that the then-current form of the Franchise Agreement may differ from the initial form.
However, the initial franchise fee for each additional outlet will remain the amount specified in Section 4.1 of the agreement. This ensures that while the terms and conditions might evolve, the upfront investment for each additional location remains consistent with the original agreement. This allows Crawlspace Medic to update its franchise agreement as needed while maintaining a predictable fee structure for developers.