What is the initial number of Crawlspace Medic outlets a developer is granted the right to develop?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor hereby grants to Developer, and the Developer hereby accepts from the Franchisor, on the terms and conditions set forth in this Agreement, which includes, but is not limited to, the execution of a Franchise Agreement pursuant to Section 4.1 hereof, the right to develop, construct, open and operate one (1) Crawlspace Medic outlet within the Development Area set forth in Attachment 3.
Developer shall be granted rights to establish additional Crawlspace Medic outlets in the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule set forth in Section 5.2 hereof, subject to Developer's full compliance with all conditions precedent to the grant of such rights outlined below, which rights shall be exercised in accordance with Section 4.1 hereof.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a developer is initially granted the right to develop, construct, open, and operate one Crawlspace Medic outlet within a defined Development Area, contingent upon the execution of a Franchise Agreement. The developer has the potential to establish additional Crawlspace Medic outlets within the Development Area, up to the total number outlined in the Mandatory Development Schedule. However, this is subject to full compliance with all conditions precedent to the grant of such rights.
To develop additional Crawlspace Medic outlets, the developer must meet specific conditions before Crawlspace Medic grants the right to develop further. These conditions include requesting the current Franchise Disclosure Document, submitting all required information and documents, providing financial statements, and meeting Crawlspace Medic's financial criteria for multiunit franchisees. The developer must also be in full compliance with the Development Agreement, the Mandatory Development Schedule, and all existing Franchise Agreements with Crawlspace Medic.
Crawlspace Medic also requires that the developer demonstrates the necessary management skills for competent operation, organization, customer service, and record keeping for each additional outlet. Crawlspace Medic retains the discretion to determine if these conditions are met. If Crawlspace Medic determines that any condition cannot be satisfied, it may terminate the Development Agreement, although this termination will not affect the validity of any other agreements between Crawlspace Medic and the developer, provided the developer is in full compliance with those agreements.