Does the Crawlspace Medic franchise agreement bind the successors and assigns of the franchisor?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
SECTION VI ADDITIONAL PROVISIONS
- 6.1. This Agreement shall run with the land and be binding upon the parties hereto and their heirs, successors, assigns, executors and administrators and representatives. The rights and obligations herein contained shall continue, notwithstanding changes in the persons or entity that may hold any leasehold or ownership in the land or building of which the Premises forms a part.
- 6.2. Franchisor may assign its rights under this Agreement, without the consent of Landlord, in connection with any transfer of its rights as franchisor of the Crawlspace Medic franchise system.
- 6.3. Franchisor or its designee may (but is not required to) enter the Premises to make any modification or alteration necessary to protect its system and the proprietary trademarks (including, but not limited to, removal of signs and materials which contain the proprietary trademarks or the
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the franchise agreement is binding upon the successors and assigns of the franchisor. Specifically, Section VI of the agreement states that it "shall run with the land and be binding upon the parties hereto and their heirs, successors, assigns, executors and administrators and representatives." This means that if Crawlspace Medic is acquired or merges with another entity, the terms of the existing franchise agreements will remain in effect, and the new entity will be obligated to uphold those agreements.
This provision offers a level of security for franchisees. It ensures that a change in ownership or structure of the Crawlspace Medic franchise system will not automatically invalidate their franchise agreement. The new franchisor is legally bound to honor the existing terms, protecting the franchisee's investment and operational framework.
However, it is important to note that while the agreement remains binding, the franchisor does retain certain rights. For example, Crawlspace Medic has the right to assign the agreement to another party in connection with a transfer of its rights as a franchisor. Additionally, the franchisor is not obligated to remain in the crawlspace or basement care business or to continue offering the same products or services to the franchisee if it assigns its rights. Franchisees should carefully consider these provisions and how they might impact their business if Crawlspace Medic undergoes a significant change in ownership or business focus.