factual

After the Crawlspace Medic franchise is terminated, for how long am I restricted by the non-competition covenant?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

Section in
Franchise
Provision Agreement Summary
q. Non-competition covenants during the term of the franchise Section 19.5.1 You may not: divert, or attempt to divert, customers of any Crawlspace Medic outlet (including yours) to any competitor, participate in any capacity, including, but not limited to as an owner, investor, officer, director, employee or agent, in any competing business; do any act that could damage the goodwill of the Marks or System, or disrupt or jeopardize our business or that of our franchisees.
r. Non-competition covenants after the franchise is terminated or expires Section 19.5.2 For 24 months after the termination of the Franchise Agreement, you may not: divert, or attempt to divert, customers of any Crawlspace Medic outlet (including yours) to any competitor, participate in any capacity, including, but not limited to as an owner, investor, officer, director, employee or agent, in any competing business within 25 miles of your former Crawlspace Medic outlet location or any other Crawlspace Medic outlet location (franchised or company owned), do any act that could damage the goodwill of the Marks or System, or disrupt or jeopardize our business or that of our franchisees.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)

What This Means (2024 FDD)

According to Crawlspace Medic's 2024 Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, the non-competition covenant restricts you for 24 months. During this 24-month period, you are prohibited from diverting or attempting to divert customers from any Crawlspace Medic outlet, including your former location, to any competitor.

This restriction also prevents you from participating in any capacity, such as an owner, investor, officer, director, employee, or agent, in any competing business. The non-compete extends to a 25-mile radius of your former Crawlspace Medic outlet location, as well as any other Crawlspace Medic outlet location, whether franchised or company-owned.

Additionally, you are barred from any action that could damage the goodwill of the Crawlspace Medic Marks or System, or disrupt or jeopardize Crawlspace Medic's business or that of its franchisees. This post-term non-compete is a standard provision in franchise agreements to protect the brand and its franchisees from unfair competition after a franchisee leaves the system.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.