How long does a Crawlspace Medic franchisee have to satisfy a final judgment before it triggers a default?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
s bond is filed); or if Developer is dissolved; or if execution is levied against Developer's business or property; or if suit to foreclose any lien or mortgage against any of Developer's Crawlspace Medic outlets premises or equipment is instituted against Developer and not dismissed within thirty (30) days.
- 7.2 Defaults with No Opportunity to Cure. Developer shall be deemed to be in material default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Developer any opportunity to cure the default, effective immediately upon notice to Developer, if Developer:
- 7.2.1 has misrepresented or omitted material facts in applying for the development rights granted here
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, a franchisee's failure to satisfy a final judgment does not trigger an automatic default if the judgment involves specific allegations.
Specifically, Crawlspace Medic can terminate the agreement without opportunity to cure if the franchisee receives an adverse judgment or consent decree in a case involving allegations of fraud, racketeering, unfair or improper trade practices, or similar claims that are likely to negatively impact the Crawlspace Medic system, marks, or goodwill. The FDD does not specify a timeframe a franchisee has to satisfy a final judgement before it triggers a default.
This means that if a franchisee faces a judgment related to these specific issues, Crawlspace Medic has the right to immediately terminate the agreement. This clause protects Crawlspace Medic from reputational and financial damage resulting from franchisee misconduct or legal issues. A prospective franchisee should seek clarification from Crawlspace Medic regarding what specific types of judgments would trigger immediate termination and whether there are any opportunities to appeal or otherwise resolve such judgments before termination occurs.