What happens to the Crawlspace Medic Development Agreement if the Developer successfully completes the development obligations in accordance with the Development Schedule?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3 TERM. Unless sooner terminated in accordance with this Agreement, the term of this Agreement and all rights granted by Franchisor under this Agreement shall expire on the date on which Developer successfully and in a timely manner has complied with all of Developer's obligations hereunder and has completed the development obligations in accordance with the Development Schedule.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the term of the Development Agreement, including all rights granted to the Developer, will expire when the Developer has successfully completed all obligations in a timely manner, including meeting the development obligations outlined in the Development Schedule. This means that once the developer has opened the agreed-upon number of Crawlspace Medic locations according to the set schedule, the Development Agreement concludes.
This expiration does not affect any other agreements between the Crawlspace Medic and the Developer, provided the Developer is in full compliance with those agreements. The Developer's rights to operate Crawlspace Medic outlets and use the system and marks are derived only through the execution of individual Franchise Agreements for each location.
This provision ensures that the Development Agreement serves its purpose of guiding the initial expansion, after which the ongoing operation of each Crawlspace Medic location is governed by its own Franchise Agreement.