Can the Franchisor change the System used by Crawlspace Medic franchisees?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Through the expenditure of considerable time, effort and money, Franchisor has developed and established a unique and distinctive crawlspace care and repair business which features, among other things, home moisture prevention and termite and water damage repair, using Franchisor's designs, and using Franchisor's confidential operations manual ("Manual") of business practices and policies, and Franchisor's distinctive trade dress, operations methods, sales techniques, inventory, procedures for management control and training, assistance, advertising, and promotional programs, all of which may be changed, improved or further developed by Franchisor at any time (taken together herein the "System").
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic retains the right to modify the System. The System encompasses various elements of the business, including designs, the confidential operations manual, business practices, policies, trade dress, operations methods, sales techniques, inventory, management control procedures, training, assistance, advertising, and promotional programs. These elements can be changed, improved, or further developed by Crawlspace Medic at any time.
This means that a Crawlspace Medic franchisee must adapt to changes that Crawlspace Medic implements within the System. These changes could involve new technologies, marketing strategies, operational procedures, or even modifications to the products and services offered. Franchisees are expected to adhere to these changes to maintain uniformity and quality across the Crawlspace Medic franchise network.
The FDD also states that Crawlspace Medic has established a website that provides information about the System, and Crawlspace Medic has sole discretion and control over the Website. Franchisees must also use software that Crawlspace Medic develops or acquires for use in the System and maintain adequate hardware and software to access the internet at the speed required by Crawlspace Medic from time to time. Franchisees are also responsible for paying all fees and expenses for technology required by the agreement, including, but not limited to, the costs of computer hardware and software, regularly recurring fees for software and Internet access, license fees, help desk fees, licensing or user-based fees for a franchise portal or a benchmarking platform. Currently this fee is 0.5% of Gross Revenue per unit per month.
For a prospective franchisee, this highlights the importance of continuous learning and adaptation. While the Crawlspace Medic franchise provides a proven system, franchisees must be prepared to invest in updates and training to keep pace with any modifications implemented by the franchisor. This ensures that all Crawlspace Medic franchises operate under the same standards and contribute to the overall brand reputation.