What are Franchisee's obligations regarding Internet Companies after the Crawlspace Medic franchise agreement terminates?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including without limitation this Agreement.
Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:
2.4.1 Direct the Internet Companies to transfer all Franchisee's Interest in and to the Internet Web Sites, Social Media Accounts and/or other Listings to Franchisor, or alternatively, to direct the Internet Companies to terminate any or all of the Internet Web Sites, Social Media Accounts and/or other Listings;
2.4.2 Direct the Telephone Companies to transfer all Franchisee's Interest in and to the Telephone Numbers and Listings to Franchisor, or alternatively, to direct the Telephone Companies to terminate any or all of the Telephone Numbers and Listings; and
2.4.3 Execute such standard assignment forms or other documents as the Internet Companies and/or Telephone Companies may require in order to affect such transfers or terminations of Franchisee's Interest.
2.5 Certification of Termination.
Franchisee hereby directs the Internet Companies and Telephone Companies to accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.
2.6 Cessation of Obligations. After the Internet Companies and the Telephone Companies have duly transferred all Franchisee's Interests as described in paragraph 2.3 above to Franchisor, as between Franchisee and Franchisor, Franchisee will have no further interest in, or obligations with respect to the particular Electronic Advertising and/or Telephone Listing. Notwithstanding the foregoing, Franchisee will remain liable to each and all of the Internet Companies and Telephone Companies for the respective sums Franchisee is obligated to pay to them for obligations Franchisee incurred before the date Franchisor duly accepted the transfer of such Interests, or for any other obligations not subject to the Franchise Agreement or this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, upon termination of the franchise agreement, Crawlspace Medic has the power to direct Internet and Telephone Companies to transfer the franchisee's interest in web sites, social media accounts, and telephone numbers/listings to Crawlspace Medic. Alternatively, Crawlspace Medic can direct these companies to terminate any or all of the franchisee's internet web sites, social media accounts, and telephone numbers/listings. To facilitate this, the franchisee grants Crawlspace Medic the authority to execute standard assignment forms required by these companies for transfers or terminations.
Crawlspace Medic's written statement, signed by an officer or agent, serves as conclusive proof of the franchise agreement's termination, which the Internet and Telephone Companies must accept. Once these companies transfer all the franchisee's interests to Crawlspace Medic, the franchisee has no further interest in or obligations related to the electronic advertising or telephone listings, as between the franchisee and Crawlspace Medic.
However, the franchisee remains liable to the Internet and Telephone Companies for any sums owed for obligations incurred before Crawlspace Medic accepted the transfer of interests. This includes any other obligations not subject to the franchise agreement or related agreements. This ensures that while Crawlspace Medic gains control over the online presence and listings, the franchisee is still responsible for settling any outstanding debts with these companies.