Is the Crawlspace Medic franchise grant applicable to multiple locations?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, the parties, in consideration of the promises, undertakings and commitments of each party to the other set forth herein, and intending to be legally bound hereby, mutually agree as follows:
- 1. RECITATIONS. The Recitations set out above form part of this Agreement.
- 2. GRANT OF FRANCHISE. Franchisor hereby grants to Franchisee and Franchisee accepts, upon the terms and conditions contained in this Agreement, the license to operate a Crawlspace Medic franchise (the "Franchised Business"), using only the Marks licensed hereunder, in strict conformity with the System, which may be changed,
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
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the standard franchise agreement grants rights to operate a single Crawlspace Medic franchise at one specific location within a designated territory. However, Crawlspace Medic also offers a Multi-Unit Development Agreement for franchisees interested in operating multiple locations.
For franchisees pursuing multi-unit development, a development fee is required, with the exact amount for three or more locations determined on a case-by-case basis depending on territory size and potential. This fee is non-refundable and fully earned upon signing the Multi-Unit Development Agreement. The franchisee receives a credit from the development fee applicable to the initial franchise fee for each location as each additional Franchise Agreement is executed.
Multi-unit developers must adhere to a mandatory development schedule, opening the second location within one year of the first, and subsequent locations at least every year thereafter. Extensions may be granted for circumstances such as natural disasters or government restrictions that impede development. Each Crawlspace Medic outlet requires a separate Franchise Agreement, and the franchisee must execute the then-current form of the Franchise Agreement for each new location.
It is important to note that while multi-unit developers receive initial training, they do not receive additional initial training for each subsequent Crawlspace Medic outlet. The initial training is deemed sufficient to construct, equip, open, and operate all of the developer's Crawlspace Medic locations.