What happens to the Crawlspace Medic development rights upon the death or permanent disability of the developer?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.6 Death or Permanent Disability.
The grant of rights under this Agreement is personal to Developer, and on the death or permanent disability of Developer, the development rights granted by this Agreement will terminate, unless prohibited by applicable law.
If prohibited by applicable law, the executor, administrator, conservator or other personal representative of Developer will transfer Developer's interest in this Agreement within six (6) months from the date of death or permanent disability, to a third party approved by Franchisor.
A transfer under this Section 6.6, including without limitation, transfer by devise or inheritance, is subject to the conditions for Transfers in this Article 6 and unless transferred by gift, devise or inheritance, subject to the terms of Section 6.5 above.
For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent Developer from supervising the development and operation of Developer's Crawlspace Medic outlets continuously for six (6) months from its onset.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the development rights granted to a developer are personal and will terminate upon their death or permanent disability, unless prohibited by applicable law. The FDD defines "permanent disability" as a mental or physical condition that prevents the developer from supervising the Crawlspace Medic outlets for six continuous months.
If applicable law prohibits the termination of rights, the developer's executor, administrator, conservator, or other personal representative must transfer the developer's interest in the agreement within six months of the death or permanent disability to a third party approved by Crawlspace Medic.
Any transfer under these circumstances, including transfers by devise or inheritance, is subject to the standard transfer conditions outlined in the agreement. If the transfer is not a gift, devise, or inheritance, it is also subject to the terms regarding the franchisor's right of first refusal. This means that Crawlspace Medic has the first option to buy back the development rights before they are offered to another party.