What happens if a Crawlspace Medic franchisee has an adjacent open territory?

According to Crawlspace Medic's 2024 Franchise Disclosure Document, a franchisee may service customers from an adjacent open territory. However, revenue generated from the adjacent open territory will not count towards the franchisee's Minimum Performance Requirement.

Crawlspace Medic requires franchisees to meet specific Minimum Performance Requirements for Total Revenue during the term of the franchise agreement. For example, in Year 1, the Minimum Performance Requirement is $225,000, increasing to $900,000 by Year 5. The revenue that counts toward meeting these requirements must come from within the franchisee's protected territory.

Failure to meet the Minimum Performance Requirements can result in a default of the franchise agreement. In such cases, Crawlspace Medic has the right to either reduce the size of the franchisee's territory or terminate the franchise relationship. This highlights the importance of focusing sales efforts within the protected territory to ensure compliance with the franchise agreement and avoid potential penalties.