When does the Crawlspace Medic franchise agreement term commence?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
On a multiple store development agreement, the second location must be open within 1 year of the opening of the first location and all additional locations must be open at a minimum of every year thereafter until the development agreement has been satisfied. Consideration will be granted if there is a natural disaster, imposed government restrictions, or other uncontrollable acts of nature which strongly inhibit the franchisee from satisfying this requirement. All time extension requests must be submitted in writing to the franchisor within 30 days prior to the year deadline for consideration. The franchisor will have 10 days to respond in writing as to whether the request for extension will be granted. Subsequent to Developer's signing of this Agreement and the initial Franchise Agreement, and provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for Developer's first Crawlspace Medic outlet, Developer shall execute an additional Franchise Agreement for the development of the second Crawlspace Medic outlet to be opened under the Mandatory Development Schedule. Provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for each subsequent Crawlspace Medic outlet to be developed by Developer, Developer shall execute an additional Franchise Agreement for the development of the next Crawlspace Medic outlet to be opened under the Mandatory Development Schedule. Notwithstanding the foregoing, Developer shall open the Crawlspace Medic outlets in accordance with the following schedule:
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
The Crawlspace Medic 2024 Franchise Disclosure Document does not explicitly state when the franchise agreement term commences. However, it does state conditions for multi-unit developers to open additional locations. Specifically, for developers with multiple store agreements, the second location must be open within one year of the first location's opening. All additional locations must open at least every year until the development agreement is fulfilled.
The FDD also mentions that upon executing a lease for each subsequent Crawlspace Medic outlet, the developer must execute an additional Franchise Agreement for developing the next outlet under the Mandatory Development Schedule. This implies that a new franchise agreement is associated with each new location opened by a multi-unit developer.
To fully understand when the Crawlspace Medic franchise agreement term commences, a prospective franchisee should ask the franchisor for clarification. Specifically, they should inquire about the exact start date of the franchise term, whether it is upon signing the agreement, opening the location, or another specific event. This information is crucial for planning and understanding the duration of the franchisee's obligations and rights.