Can Crawlspace Medic grant franchises or licenses to others to use the Intellectual Property and System?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Pursuant to franchise agreements, Franchisor licenses to others the right to operate a Crawlspace Medic franchise, using the Marks and System, in strict conformity therewith, which may be changed, improved and further developed by Franchisor from time to time (each a "Franchise Agreement").
Developer understands and acknowledges the importance of Franchisor's high and uniform standards of quality, service, and appearance, and the necessity of operating franchised businesses of the System in conformity with Franchisor's standards and specifications.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic grants franchisees the right to operate a Crawlspace Medic franchise using the Marks and System. This is done through a franchise agreement, where Crawlspace Medic licenses the use of its Marks and System to franchisees. The franchisee must operate in strict conformity with the System, which Crawlspace Medic may change, improve, or further develop over time. This grant is for a single location within a designated territory.
The FDD also states that Crawlspace Medic will not allow any other franchisees to operate a franchised Crawlspace Medic location in the franchisee's territory using the same Marks, as long as the franchisee is not in default and the agreement has not expired or been terminated. However, Crawlspace Medic reserves the right to open, operate, or franchise Crawlspace Medic franchises around, bordering, and adjacent to the franchisee's territory.
Furthermore, Crawlspace Medic retains the rights to offer other products or services not offered under the Marks, other crawlspace or basement care and repair concepts under the Marks or other trademarks, and products or services through any channel other than a dedicated Crawlspace Medic location, such as the Internet. The franchisee will not receive compensation for Crawlspace Medic's sales through these alternate distribution channels within the franchisee's territory. Crawlspace Medic also reserves the right to acquire, be acquired by, or merge with another company.