What happens to the goodwill associated with the Crawlspace Medic franchise upon expiration or termination of the franchise agreement?

According to the 2024 Crawlspace Medic Franchise Disclosure Document, any goodwill that arises from a franchisee's use of the Intellectual Property and the Crawlspace Medic system will exclusively benefit Crawlspace Medic, LLC and the franchisor. Upon the expiration or termination of the franchise agreement, the franchisee will not be assigned any monetary amount attributable to the goodwill associated with their use of the Intellectual Property. This means that the franchisee cannot claim or receive compensation for any increase in brand recognition or customer loyalty they may have contributed to during the term of their franchise agreement.

This provision is standard in franchising, as the franchisor owns the brand and system. The franchisee is essentially renting the brand and system for the term of the agreement. Therefore, any increase in brand value or customer loyalty ultimately benefits the franchisor. Crawlspace Medic franchisees should understand that they are building equity in the Crawlspace Medic brand, not in their own business name.

After the franchise agreement ends, the franchisee must cease using all Crawlspace Medic trademarks, service marks, and other intellectual property. This includes refraining from identifying themselves as a current Crawlspace Medic owner or franchisee. This is to ensure that customers do not mistakenly associate the former franchisee's business with the Crawlspace Medic brand. The franchise agreement also contains non-compete clauses that restrict the franchisee from operating a similar business within a certain geographic area for a specified period, further protecting the goodwill of the Crawlspace Medic system.