What is the minimum opening frequency for additional Crawlspace Medic locations after the second location?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
5.2 Mandatory Development Schedule.On a multiple store development agreement, the second location must be open within 1 year of the opening of the first location and all additional locations must be open at a minimum of every year thereafter until the development agreement has been satisfied. Consideration will be granted if there is a natural disaster, imposed government restrictions, or other uncontrollable acts of nature which strongly inhibit the franchisee from satisfying this requirement. All time extension requests must be submitted in writing to the franchisor within 30 days prior to the year deadline for consideration. The franchisor will have 10 days to respond in writing as to whether the request for extension will be granted. Subsequent to Developer's signing of this Agreement and the initial Franchise Agreement, and provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for Developer's first Crawlspace Medic outlet, Developer shall execute an additional Franchise Agreement for the development of the second Crawlspace Medic outlet to be opened under the Mandatory Development Schedule. Provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for each subsequent Crawlspace Medic outlet to be developed by Developer, Developer shall execute an additional Franchise Agreement for the development of the next Crawlspace Medic outlet to be opened under the Mandatory Development Schedule. Notwithstanding the foregoing, Developer shall open the Crawlspace Medic outlets in accordance with the following schedule:
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, if a franchisee enters into a multiple store development agreement, they must open their second location within one year of opening the first. After the second location, all additional Crawlspace Medic locations must be opened at a minimum of every year thereafter until the development agreement is fulfilled.
This mandatory development schedule is subject to consideration for exceptions. Crawlspace Medic may grant an extension if there is a natural disaster, imposed government restrictions, or other uncontrollable acts of nature that strongly inhibit the franchisee from satisfying the requirement. To be considered, the franchisee must submit a written request to Crawlspace Medic at least 30 days before the year deadline. Crawlspace Medic then has 10 days to respond in writing as to whether the extension will be granted.
This requirement ensures that multi-unit developers continue to expand the Crawlspace Medic brand presence according to an agreed-upon schedule. Failing to meet the development schedule could potentially lead to penalties or termination of the development agreement, so prospective franchisees should carefully consider their ability to meet this timeline before committing to a multi-unit agreement.