Will a Crawlspace Medic franchisee receive compensation for the franchisor's sales through alternate distribution channels within the franchisee's territory?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee will receive no compensation for Franchisor's sales through Alternate Distribution Channels made within the Territory.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a franchisee will not receive compensation for the franchisor's sales through alternate distribution channels within the franchisee's territory. Crawlspace Medic reserves the right to offer products or services through any channel other than a dedicated Crawlspace Medic location, such as the Internet, which are considered "Alternate Distribution Channels."
This means that even if Crawlspace Medic makes sales within a franchisee's territory through online platforms or other channels, the franchisee will not be entitled to any portion of the revenue generated from those sales. This reservation of rights allows Crawlspace Medic to explore and utilize various distribution methods without directly benefiting the franchisee.
This policy could impact a franchisee's potential revenue, especially if the franchisor's alternate distribution channels are successful in the franchisee's territory. A prospective franchisee should consider this when evaluating the potential profitability of a Crawlspace Medic franchise and discuss with the franchisor how these alternate channels are managed and their potential impact on the franchisee's business.