Does a Crawlspace Medic franchisee receive compensation for sales through alternate distribution channels within their territory?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Reservation of Rights. Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory. By way of example only, Franchisor reserves the rights to offer (i) other products or services not offered under the Marks, (ii) other crawlspace or basement care and repair concepts under the Marks or other trademarks, including licensing Franchisor's designs for use in other formats and (iii) products or services through any channel in the Territory other than a dedicated Crawlspace Medic location, such as the Internet ("Alternate Distribution Channels"). 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 the 2024 Crawlspace Medic Franchise Disclosure Document, franchisees will not receive compensation for sales made through alternate distribution channels within their territory. Crawlspace Medic retains the rights to offer products or services through channels other than the franchisee's dedicated location, such as through the internet or other methods. These are referred to as "Alternate Distribution Channels."
This means that even if Crawlspace Medic generates sales within a franchisee's territory through these alternate channels, the franchisee will not receive any portion of the revenue. This reservation of rights allows Crawlspace Medic to explore and utilize various sales avenues without directly benefiting the franchisee.
As a prospective franchisee, it is important to understand that Crawlspace Medic maintains control over these alternate distribution channels and the revenue they generate. This could impact a franchisee's potential earnings, as Crawlspace Medic can tap into the same customer base through different means without sharing the profits. Franchisees should consider this when evaluating the potential profitability of a Crawlspace Medic franchise and discuss with the franchisor their strategy for online sales and other alternate channels.