Does the Crawlspace Medic Franchise Agreement include a section on 'Transfers'?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
PACE MEDIC INDEMNITEES HARMLESS, FRANCHSIEE WILL REIMBURSE THE CRAWLSPACE MEDIC INDEMNITEES AS THE COSTS AND EXPENSES ARE INCURRED BY THE CRAWLSPACE MEDIC INDEMNITEES.
Initial
16. TRANSFERS
16.1. Transfers by Franchisor.
16.1.1. Franchisor shall have the right to assign this Agreement, and all of Franchisor's rights and privileges hereunder, to any person, firm,
corporation or other entity, without Franchisee's permission or prior knowledge, provided that, with respect to any assignment resulting in the subsequent performance by the assignee of Franchisor's obligations, the assignee shall expressly assume and agree to perform Franchisor's obligations hereunder. Specifically, and without limitation to the foregoing, Franchisee expressly affirms and agrees that Franchisor may: (i) sell Franchisor's assets and Franchisor's rights to the Marks and the System outright to a third party; (ii) engage in a public or private placement of some or all of Franchisor's securities; (iii) merge, acquire other corporations, or be acquired by another corporation, including competitors; (iv) undertake a refinancing, recapitalization, leveraged buy-out or other economic or financial restructuring; and (v) with regard to any or all of the above sales, assignments and dispositions, Franchisee expressly and specifically waives any claims, demands or damages arising from or relating to the loss of association with or identification of Franchisor. Nothing contained in this Agreement shall require Franchisor to remain in the business franchised herein or to offer the same products and services, whether or not bearing the Marks, in the event that Franchisor exercises its prerogative hereunder to assign Franchisor's rights in this Agreement.
- 16.1.2. Franchisee agrees that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of the facilities (which Franchisee acknowledges may be within the Territory, proximate thereto, or proximate to any of Franchisee's locations).
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
Yes, according to the 2024 Crawlspace Medic Franchise Disclosure Document, the agreement does include a section on transfers. Specifically, Section 16 addresses transfers, outlining the conditions and restrictions for both the franchisor and the franchisee.
The Crawlspace Medic agreement states that the franchisor has the right to assign the agreement to any person or entity. However, if Crawlspace Medic assigns its rights, it is not required to remain in the crawlspace or basement care business or to offer any products or services to the franchisee.
The agreement also places restrictions on transfers by the franchisee, stating that the franchisee's rights and duties are personal, based on Crawlspace Medic's perceptions of the franchisee's character, skills, and financial capacity. Therefore, the franchisee cannot transfer the agreement or any rights without prior written approval from Crawlspace Medic, and any transfer without such approval may be voided. The franchisee is prohibited from directly or indirectly selling, assigning, transferring or encumbering the agreement, the franchise, the franchised business, or any assets without the franchisor's written consent.