Where in the Crawlspace Medic franchise agreement can I find details about the franchisee's operational obligations?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
improved and further developed by Franchisor from time to time. This grant applies only to a single location within a territory that is designated in Attachment 2 attached hereto and incorporated herein (the "Territory").
3. TERRITORY
- 3.1 Territory. This Agreement grants Franchisee the right to operate the Franchised Business at a single location within the Territory. Franchisor agrees that Franchisor will not, and Franchisor will not permit any other of our franchisees, to operate a franchised Crawlspace Medic location in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not expired or been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Crawlspace Medic franchises around, bordering and adjacent to the Territory. Franchisee will be selling its products and services from a location within the territory, and will provide services to customers within that territory. Franchisee is prohibited from selling and soliciting customers through alternative distribution channels as more fully specified herein.
- 3.2 Reservation of Rights. Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory. By way of example only, Franchisor reserves the rights to offer (i) other products or services not offered under the Marks, (ii) other crawlspace or basement care and repair concepts under the Marks or other trademarks, including licensing Franchisor's designs for use in other formats and (iii) products or services through any channel in the Territory other than a dedicated Crawlspace Medic location, such as the Internet ("Alternate Distribution Channels"). Franchisee will receive no compensation for Franchisor's sales through Alternate Distribution Channels made within the Territory. Franchisor also reserves the right to acquire, be acquired by or merge with another company. Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
- 3.3 Minimum Performance Requirements. In order to maintain the Territory, franchisee understands and agrees that they must maintain the following Minimum Performance Requirements for Revenue Per Year of Agreement:
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, Item 22 references several sections of the franchise agreement that outline the franchisee's operational obligations. Specifically, Section 3.1 details the territory in which the franchisee can operate, stating that the franchisee has the right to operate the franchised business at a single location within the Territory. It also specifies that Crawlspace Medic will not allow other franchisees to operate within that territory using the same marks, as long as the franchisee is not in default of the agreement.
Additionally, Section 3.2 reserves rights for Crawlspace Medic to operate other businesses or offer different products/services, including through alternative distribution channels like the Internet, within or outside the franchisee's territory. The franchisee will not receive compensation for Crawlspace Medic's sales through these alternative channels. Section 3.3 outlines the Minimum Performance Requirements for Revenue Per Year of Agreement that a franchisee must maintain to keep their territory.
Furthermore, Section 18.1 outlines the franchisee's obligations upon termination or expiration of the agreement, including ceasing operation of the franchised business and discontinuing the use of Crawlspace Medic's marks and intellectual property. These sections collectively define key operational obligations and restrictions for Crawlspace Medic franchisees.