Where must the revenue for the Crawlspace Medic minimum performance requirement come from?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
single location within a territory that is designated in Attachment 2 attached hereto and incorporated herein (the "Territory").
3. TERRITORY
- 3.1 Territory. This Agreement grants Franchisee the right to operate the Franchised Business at a single location within the Territory. Franchisor agrees that Franchisor will not, and Franchisor will not permit any other of our franchisees, to operate a franchised Crawlspace Medic location in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not expired or been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Crawlspace Medic franchises around, bordering and adjacent to the Territory. Franchisee will be selling its products and services from a location within the territory, and will provide services to customers within that territory. Franchisee is prohibited from selling and soliciting customers through alternative distribution channels as more fully specified herein.
- 3.2 Reservation of Rights.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, franchisees are required to meet minimum performance standards to maintain their territory rights. The FDD specifies that franchisees will be selling its products and services from a location within the territory, and will provide services to customers within that territory. Franchisees are prohibited from selling and soliciting customers through alternative distribution channels.
This means that to meet the minimum revenue performance requirements, Crawlspace Medic franchisees must generate revenue directly from their designated territory through the sale of approved products and services. The agreement explicitly restricts franchisees from using other sales channels.
This restriction ensures that the franchisee focuses on developing their local territory and does not rely on other channels that might compete with or undermine the efforts of other franchisees or the franchisor. It also means that the franchisee's success is tied to their ability to effectively market and provide services within their exclusive territory, emphasizing the importance of local market penetration and customer service.