What must the Crawlspace Medic franchisee acknowledge receiving with the Franchise Disclosure Document?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Franchisor expressly disclaims the making of, and Franchisee acknowledges that it has not received or relied upon, any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by the Franchise Agreement. | 5. |
|---|---|
| Initial | |
| Franchisee acknowledges that Franchisor's approval or acceptance of Franchisee's | 6. |
| Business location does not constitute a warranty, recommendation or endorsement of the | |
| location for the Franchised Business, nor any assurance by Franchisor that the operation | |
| of the Franchised Business at the premises will be successful or profitable. | |
| Initial | |
| Franchisee acknowledges that it has received the CSM Franchise Group, LLC | 7. |
| Franchise | |
| Disclosure Document with a complete copy of the Franchise Agreement and all related | |
| Attachments and agreements at least fourteen (14) calendar days prior to the date on which | |
| the Franchise Agreement was executed. |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 40–42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a prospective franchisee must acknowledge that they received the CSM Franchise Group, LLC Franchise Disclosure Document, which includes a complete copy of the Franchise Agreement and all related attachments and agreements. This acknowledgement confirms that the franchisee received these documents at least fourteen calendar days before the Franchise Agreement was executed. Furthermore, the franchisee acknowledges that they have read the Franchise Disclosure Document and understand its contents.
This acknowledgement is a standard practice in franchising, ensuring that franchisees have had sufficient time to review the FDD and seek advice from attorneys, accountants, and other advisors before making a final decision. The 14-day review period is mandated by the FTC's Franchise Rule and various state franchise laws to protect prospective franchisees from being pressured into signing an agreement without proper consideration.
By signing this acknowledgement, the franchisee confirms that they are aware of the terms and conditions of the franchise agreement and have had the opportunity to conduct due diligence. This helps to protect Crawlspace Medic from potential legal disputes in the future, as the franchisee cannot later claim that they were unaware of the contents of the FDD or were pressured into signing the agreement without proper review.