Is the Crawlspace Medic Franchise Agreement binding on heirs, successors, and assigns?
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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the Franchise Agreement has specific stipulations regarding its binding nature on different parties. Specifically, an agreement related to premises runs with the land and is binding upon the parties and their heirs, successors, assigns, executors, administrators, and representatives. This means that the obligations and rights outlined in that particular agreement will continue even if there are changes in who owns or leases the land or building where the Crawlspace Medic franchise operates. This ensures continuity and adherence to the terms initially agreed upon, regardless of changes in ownership or management. This clause appears to pertain to a lease agreement rather than the franchise agreement itself. The franchise agreement dictates the relationship between Crawlspace Medic and the franchisee, while this clause pertains to a real estate agreement.
However, the Crawlspace Medic Franchise Agreement also addresses the transfer of rights and duties by both the franchisor and the franchisee. Crawlspace Medic retains the right to assign the agreement to another entity in cases of purchase, merger, acquisition, or affiliation with another business. Conversely, the franchisee's ability to transfer their rights and duties is restricted, requiring prior written approval from Crawlspace Medic. This is because Crawlspace Medic enters the agreement based on their assessment of the franchisee's individual skills, character, and financial capacity.
Therefore, while certain agreements connected to the Crawlspace Medic franchise, such as a lease, are explicitly binding on heirs, successors, and assigns, the Franchise Agreement itself has specific transfer restrictions for the franchisee. This distinction is important for prospective franchisees to understand, as it clarifies the conditions under which the franchise can be transferred or inherited, and how the agreement remains in effect through various changes in business structure or ownership.