What rights are fully reserved to Crawlspace Medic within or outside of the franchisee's territory?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding the provisions of Section 2.1 above, 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.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, Crawlspace Medic reserves all rights to businesses not specifically granted to the franchisee within or outside the territory. This means that while a franchisee is granted the right to operate a Crawlspace Medic franchise at a single location within a defined territory, Crawlspace Medic retains control over other business opportunities.
Specifically, Crawlspace Medic reserves the right to offer other products or services not offered under the Crawlspace Medic marks, other crawlspace or basement care and repair concepts under the marks or other trademarks, including licensing Crawlspace Medic's designs for use in other formats, and products or services through any channel in the territory other than a dedicated Crawlspace Medic location, such as the Internet, which are referred to as "Alternate Distribution Channels". The franchisee will not receive any compensation for Crawlspace Medic's sales through these alternate distribution channels made within the territory.
Additionally, Crawlspace Medic retains the right to acquire, be acquired by, or merge with another company. The implementation of these rights by Crawlspace Medic is not deemed to impair or injure the franchisee's rights as defined in the agreement. This reservation of rights allows Crawlspace Medic to explore various business avenues and strategic partnerships without necessarily including the franchisee, which is a fairly standard practice in franchising to allow the franchisor to adapt and grow the brand.