Does Crawlspace Medic provide material benefits based on the use of designated sources?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Selection. Territory selection criteria, as Franchisor may deem advisable. Franchisor shall also approve the Franchised location in accordance with Section 8.1.2.
- 10.2. Construction. Provide to Franchisee criteria and specifications for a Crawlspace Medic vehicle modification. Such criteria and specifications include, but are not necessarily limited to, signage, color and equipment modifications to your vehicle. Franchisee shall independently, and at Franchisee's expense, have the vehicle modified to follow such criteria and specifications in accordance with Article 8. Franchisor will provide sample layout and specs for build out of the Crawlspace Medic location.
- 10.3. Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–21)
What This Means (2024 FDD)
Based on the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic franchisees may be required to purchase or lease from designated or approved suppliers, but the FDD does not explicitly state that Crawlspace Medic receives material benefits from these required purchases.
Item 10.7 states that Crawlspace Medic will make available a list of approved and/or recommended suppliers of products and services for System franchisees, and amend this list as deemed appropriate. Item 10.2 states that Crawlspace Medic will provide franchisees with criteria and specifications for vehicle modification, including signage, color, and equipment modifications. The franchisee is responsible for independently modifying the vehicle at their own expense.
While Crawlspace Medic outlines the obligation for franchisees to use approved suppliers and meet certain specifications, the FDD does not provide explicit details on whether Crawlspace Medic receives any financial benefits or other material consideration from these designated suppliers. A prospective franchisee should seek clarification from Crawlspace Medic regarding any potential benefits they receive from required supplier relationships.