Does the Crawlspace Medic Franchise Agreement include a section on 'Territory'?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
Yes, according to the 2024 Crawlspace Medic Franchise Disclosure Document, the Franchise Agreement does include a section on 'Territory'. Specifically, Section 3 of the agreement outlines the franchisee's territory rights and the franchisor's reserved rights within and around that territory. Attachment 2 to the agreement designates the specific territory granted to the franchisee. This section defines the scope of the franchisee's exclusive rights to operate a Crawlspace Medic business within a defined area.
The agreement grants the franchisee the right to operate their Crawlspace Medic business at a single location within the designated territory. Crawlspace Medic agrees not to allow other franchisees to operate a franchised location within the franchisee's territory using the same marks, as long as the franchisee is not in default of the agreement. However, Crawlspace Medic retains the right to open, operate, or franchise other Crawlspace Medic locations around, bordering, and adjacent to the franchisee's territory. The franchisee is expected to sell products and services from a location within their territory and provide services to customers within that territory.
Crawlspace Medic also reserves certain rights within and outside the territory. This includes the right to offer other products or services not offered under the Crawlspace Medic marks, other crawlspace or basement care and repair concepts under the marks, and products or services through alternative channels such as the Internet. The franchisee will not receive compensation for Crawlspace Medic's sales through these alternative channels within the territory. To maintain the territory, the franchisee must meet certain minimum performance requirements for revenue per year of the agreement.