Does Crawlspace Medic reserve the right to offer other services not offered under the Marks?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Reservation of Rights. Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory. By way of example only, Franchisor reserves the rights to offer (i) other products or services not offered under the Marks, (ii) other crawlspace or basement care and repair concepts under the Marks or other trademarks, including licensing Franchisor's designs for use in other formats and (iii) products or services through any channel in the Territory other than a dedicated Crawlspace Medic location, such as the Internet ("Alternate Distribution Channels"). Franchisee will receive no compensation for Franchisor's sales through Alternate Distribution Channels made within the Territory. Franchisor also reserves the right to acquire, be acquired by or merge with another company. Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic retains specific rights regarding the offering of other services and products. Crawlspace Medic reserves the right to offer products or services that are not offered under the established Marks. They also reserve the right to offer other crawlspace or basement care and repair concepts under the Marks or other trademarks, including licensing Franchisor's designs for use in other formats.
Additionally, Crawlspace Medic can distribute products or services through any channel other than a dedicated Crawlspace Medic location, such as the Internet, referred to as "Alternate Distribution Channels." The franchisee will not receive any compensation for Crawlspace Medic's sales through these alternate channels within their territory. Crawlspace Medic also retains the right to acquire, be acquired by, or merge with another company.
This reservation of rights allows Crawlspace Medic to explore new business avenues and adapt to market changes without being restricted by the existing franchise agreements. However, the agreement states that the implementation of these rights is not deemed to impair or injure the franchisee's rights under Section 2 of the agreement. This clause aims to protect the franchisee's core business operations within their designated territory while allowing Crawlspace Medic to pursue additional opportunities.