What happens if a Crawlspace Medic franchisee fails to comply with applicable laws?

• 7.2 Defaults with No Opportunity to Cure. Developer shall be deemed to be in material default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Developer any opportunity to cure the default, effective immediately upon notice to Developer, if Developer:
  • 7.2.1 has misrepresented or omitted material facts in applying for the development rights granted hereunder;
  • 7.2.2 falsifies any report required to be furnished Franchisor hereunder;
  • 7.2.3 fails to comply with any federal, state or local law, rule or regulation, applicable to the development and operations of Developer's Crawlspace Medic outlets, including, but not limited to, the failure to pay taxes;
  • 7.2.4 fails to develop the Crawlspace Medic outlets in accordance with the Mandatory Development Schedule.
  • 7.2.5 attempts a Transfer in violation of the provisions of Article 6 of this Agreement;
  • 7.2.6 is convicted of, or pleads no contest to, a felony or to a crime that could damage the goodwill associated with the Marks or does anything that may harm the reputation of the System or the goodwill associated with the Marks;
  • 7.2.7 receives an adverse judgment or a consent decree in any case or proceeding involving allegations of fraud, racketeering, unfair or improper trade practices or similar claim which is likely to have an adverse effect on the System, or the Marks, the goodwill associated therewith or Franchisor's interest therein, in Franchisor's sole opinion;
  • 7.2.8 fails to comply with the non-disclosure and non-competition covenants in Article 8 hereof;
  • 7.2.9 defaults, or an affiliate of Developer defaults, under any other agreement, including any Franchise Agreement, with Franchisor, or any of Franchisor's affiliates or suppliers, or a landlord and does not cure such default within the time period

Source: Item 22 — CONTRACTS (FDD page 42)