If a Crawlspace Medic franchisee has a levy, is that a curable default?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Section in Franchise Provision Agreement Summary h. "Cause" defined - non-curable Sections 17.1 and The Franchise Agreement will terminate defaults 17.2 automatically, without notice for the following defaults: insolvency; bankruptcy; written admission of inability to pay debts; receivership; levy; composition with creditors; unsatisfied final judgment for more than 30 days; or foreclosure proceeding that is not dismissed within 30 days.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a levy against a franchisee is considered a non-curable default. This means that if a levy is placed on a Crawlspace Medic franchise, the franchise agreement can be terminated automatically without notice.
Specifically, the FDD states that the Franchise Agreement will terminate automatically, without notice, for defaults including a levy. This is listed alongside other serious financial issues like insolvency, bankruptcy, and receivership. These types of defaults are considered severe enough that Crawlspace Medic does not offer an opportunity for the franchisee to correct the issue.
This policy is stricter than the curable default terms, which allow a 5-day cure period for non-payments and other defaults. The distinction highlights the importance Crawlspace Medic places on the franchisee's financial stability and adherence to the agreement's terms to protect the brand and system. Prospective franchisees should be aware of these termination conditions and ensure they maintain sound financial practices to avoid such defaults.