What is a Crawlspace Medic franchisee required to do to ensure their employees enhance the franchisor's brand?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
t, upon the termination of Covenantor's employment or association with Franchisee and continuing for twenty-four (24) months thereafter, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
- (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the Crawlspace Medic System to any competitor, by direct or indirect inducement or otherwise,
- (ii) participate as an owner, partner, director, officer, employee, or consultant or serve in any other managerial, operational or supervisory capacity in any crawlspace or basement service business within the within twenty-five (25) miles of Franchisee's Territory or any Crawlspace Medic location.
- c. The parties acknowledge and agree that each of the covenants contained herein are reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect the goodwill or other business interests of Franchisor.
- d. If the period of time or the geographic scope specified Section 2.b. above, should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion thereof, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable. In addition, Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement or any portion thereof, without Covenantor's or Franchisee's consent, effective immediately upon receipt
by Covenantor of written notice thereof, and Covenantor agrees to forthwith comply with any covenant as so modified.
3. General.
- a. Franchisee shall take full responsibility for ensuring that Covenantor acts as required by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, franchisees have several obligations to ensure their employees positively contribute to the brand. Franchisees must ensure that their employees do not engage in activities that could harm the Crawlspace Medic brand or divert business away from the franchise or other franchisees within the system. Specifically, employees are prohibited from attempting to solicit customers for competing businesses.
Additionally, employees are restricted from participating in any capacity (owner, partner, director, officer, employee, consultant, or agent) with any crawlspace or basement service business similar to the Crawlspace Medic system. This restriction applies within twenty-five (25) miles of the franchisee's territory or any Crawlspace Medic location. Franchisees are responsible for ensuring their employees adhere to these covenants, and any breach could result in irreparable injury to Crawlspace Medic.
To maintain brand consistency, franchisees must also ensure that all advertising and promotional activities are conducted professionally and comply with Crawlspace Medic's standards. Franchisees need to submit all advertising materials to Crawlspace Medic for approval, and they cannot use unapproved materials. By adhering to these guidelines, Crawlspace Medic franchisees can help protect and enhance the brand's reputation.