Does the internal dispute resolution agreement for Crawlspace Medic survive the termination or expiration of the Franchise Agreement?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.1. Internal Dispute Resolution. Franchisee shall first bring any claim, controversy or dispute arising out of or relating to this Agreement, the Attachments hereto or the relationship created by this Agreement to Franchisor's president and/or chief executive officer for resolution. After providing notice as set forth in Section 21.7 below, Franchisee must exhaust this internal dispute resolution procedure before Franchisee may bring Franchisee's dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the agreement to first attempt internal resolution of disputes between the franchisee and Crawlspace Medic survives the termination or expiration of the Franchise Agreement. This means that even after the franchise agreement ends, either through termination or expiration, the franchisee is still obligated to try to resolve any claims, controversies, or disputes with Crawlspace Medic's president and/or chief executive officer before pursuing third-party resolution.
This requirement to exhaust internal dispute resolution procedures before seeking external remedies can have significant implications for a franchisee. It potentially adds an extra step and time to the dispute resolution process, even after the franchise relationship has ended. While internal dispute resolution may offer a quicker and less expensive way to resolve issues, it also means the franchisee must first engage with Crawlspace Medic directly, which may not always be desirable, especially after a contentious termination.
Many franchise agreements include dispute resolution clauses, often involving mediation or arbitration. The Crawlspace Medic franchise agreement stands out by explicitly requiring an initial internal dispute resolution step that survives the agreement's term. This could be seen as an attempt to foster communication and resolve issues amicably, but franchisees should be aware of this obligation and its potential impact on their ability to pursue claims against Crawlspace Medic after the franchise agreement concludes.