Does the Crawlspace Medic Franchise Agreement include a section on 'Renewal Options'?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
5.2.3 Franchisee will have completed any required additional training to Franchisor's reasonable satisfaction.
5.2.4 Franchisee shall have completed any required updates to the Franchised Business location in order to meet system standards.
5.2.5 Franchisee shall execute a general release of all claims Franchisee may have against CSM Franchise Group, LLC, its parent, subsidiaries and affiliates, its officers, directors, shareholders, agents, and employees, whether in their corporate and/or individual capacities.
This release will include all claims arising under any federal, state, or local law, rule, or ordinance.
5.2.6 Franchisee performs such remodeling, repairs, replacements and redecoration as Franchisor may require causing the Franchised Business location, equipment, and trade dress to conform to the plans and specifications being used for new franchised businesses on the renewal date.
5.2.7 Franchisee shall pay the required Successor Fee and sign the Successor Franchise Agreement.
5.3 Notice Required by Law.
If applicable law requires Franchisor to give notice to Franchisee prior to the expiration of the Term, this Agreement shall remain in effect on a month-to-month basis until Franchisor has given the notice required by such applicable law.
If Franchisor is not offering new Crawlspace Medic franchises, is in the process of revising, amending or renewing Franchisor's form of franchise agreement or disclosure document, or Franchisor is not lawfully able to offer Franchisee the then current form of Renewal Franchise Agreement at the time Franchisee advises Franchisor pursuant to Paragraph 5.2 hereof that Franchisee desires to renew, Franchisor may, in Franchisor's sole discretion, (i) offer to renew this Agreement upon the same terms set forth herein for the appropriate renewal term or (ii) offer to extend the Term hereof on a month-tomonth basis following the expiration of the Term for as long as Franchisor deems necessary or appropriate so that Franchisor may lawfully offer the then current
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
Yes, according to Crawlspace Medic's 2024 Franchise Disclosure Document, the Franchise Agreement addresses renewal options. Specifically, Paragraph 5.2 outlines the conditions under which a franchisee can renew their agreement. These conditions include completing additional training, updating the franchise location to meet system standards, executing a general release of claims against Crawlspace Medic, performing required remodeling and paying a successor fee, as well as signing a Successor Franchise Agreement.
Additionally, the FDD states that if Crawlspace Medic is not offering new franchises, is revising their franchise agreement or disclosure document, or cannot lawfully offer the current form of Renewal Franchise Agreement, they may choose to renew the agreement under the same terms or extend the term on a month-to-month basis. This provides Crawlspace Medic with flexibility in managing renewals during periods of change or legal constraint.
Furthermore, if applicable law requires Crawlspace Medic to provide notice to the franchisee before the term expires, the agreement will remain in effect on a month-to-month basis until the required notice is given. This ensures compliance with legal requirements and provides a transition period. These stipulations regarding renewal are important for prospective franchisees to understand, as they outline the requirements and potential scenarios for continuing their Crawlspace Medic franchise beyond the initial term.