If Crawlspace Medic establishes a regional cooperative, what documents must a franchisee sign?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all franchised Crawlspace Medic outlets in a designated geographic area. Our affiliateowned outlets may participate in a regional cooperative, in our sole discretion. Each Crawlspace Medic outlet will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 23–29)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, if the company establishes a regional cooperative, franchisees must sign all documents that Crawlspace Medic requests to become a member of the cooperative, according to the terms of those documents. The cooperative will consist of all franchised Crawlspace Medic outlets within a specific geographic area.
Crawlspace Medic has the right to form, dissolve, merge, or change the structure of these cooperatives. Each Crawlspace Medic outlet gets one vote in the cooperative. Crawlspace Medic determines how each cooperative will be organized and governed.
This requirement means that franchisees must comply with any documentation requests from Crawlspace Medic related to regional cooperatives. Failure to sign the required documents and participate in the cooperative could result in a breach of the Franchise Agreement. Prospective franchisees should inquire about the potential structure, governance, and financial obligations associated with regional cooperatives to fully understand their commitments.