Can a Crawlspace Medic franchisee's employees engage in other business activities, and if so, under what conditions?

According to the 2024 Crawlspace Medic Franchise Disclosure Document, the agreement specifies certain restrictions on activities of the franchisee and principals but does not explicitly address whether a Crawlspace Medic franchisee's employees can engage in other business activities. However, the document does state that the franchisee is responsible for ensuring their employees act as required by the agreement.

Item 22 outlines non-compete covenants that restrict the franchisee and principals from engaging in any crawlspace or basement service business similar to the Crawlspace Medic system during the term of the agreement and for a period of twenty-four months after the agreement expires or terminates. These restrictions apply within twenty-five miles of the franchisee's territory or any Crawlspace Medic location. The franchisee is also prohibited from diverting business or customers to any competitor.

While the FDD does not directly address employee activities outside of Crawlspace Medic, it emphasizes that the franchisee has full control over the day-to-day operations and that any training provided to employees does not create an employment relationship between Crawlspace Medic and the franchisee's employees. Therefore, a prospective franchisee should seek clarification from Crawlspace Medic regarding any potential restrictions or guidelines concerning their employees' outside business activities to ensure compliance with the franchise agreement.