factual

What does the Crawlspace Medic franchisee agree to not do regarding the franchisor's rights?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2024 FDD)

According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees agree that the franchisor's implementation of its rights does not impair or injure the franchisee's rights. Specifically, Crawlspace Medic retains the right to offer other products or services not offered under the brand's marks, other crawlspace or basement care and repair concepts under the marks or other trademarks, including licensing designs for use in other formats, and products or services through any channel in the Territory other than a dedicated Crawlspace Medic location, such as the Internet (referred to as "Alternate Distribution Channels").

Crawlspace Medic franchisees will not receive any compensation for the franchisor's sales through these Alternate Distribution Channels within their territory. The franchisor also reserves the right to acquire, be acquired by, or merge with another company. Furthermore, Crawlspace Medic has the right to purchase, merge, acquire, or affiliate with an existing competitive or non-competitive franchise network, chain, or any other business, regardless of the location of that chain's or business's facilities. They can also operate, franchise, or license those businesses and/or facilities operating under the Crawlspace Medic marks or any other marks following the purchase, merger, acquisition, or affiliation, even if the facilities are within the franchisee's territory.

However, Crawlspace Medic represents that it will not convert any such acquired facilities operating within the franchisee's territory to a Crawlspace Medic franchise during the term of the agreement. The franchisee is also restricted from transferring their rights and duties under the agreement without prior written approval from Crawlspace Medic, as these rights are personal to the franchisee and based on the franchisor's assessment of their character, skills, and financial capacity. The franchisee cannot directly or indirectly sell, assign, transfer, give, devise, convey, or encumber the agreement or any rights within it without the franchisor's consent.

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.