Is a levy a curable or non-curable default for a Crawlspace Medic franchise?
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 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 such as 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.
This is a significant point for prospective franchisees to understand, as it means that certain financial difficulties that lead to a levy can result in immediate termination of the franchise agreement. Unlike some other defaults, there is no opportunity to correct the situation and maintain the franchise. Franchisees should ensure they have sufficient financial stability and risk management strategies in place to avoid such circumstances.