What rights does Crawlspace Medic have if a franchisee defaults on the Minimum Performance Requirements?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
er that revenue does not count toward your Minimum Performance Requirement.
You are required to maintain the following Minimum Performance Requirements for Total Revenue during the term of your franchise agreement.
Year 1 Year 2 Year 3 Year 4 Year 5 Minimum Performance Requirements Revenue Per Year of Agreement $225,000 $350,000 $600,000 $750,000 $900,000
Total Revenue
The revenue that makes up your Minimum Performance Requirement must come from within your protected territory. If you fail to maintain these Minimum Performance Requirements, it is considered a default of your franchise agreement and we have the right to eit
Source: Item 12 — TERRITORY (FDD pages 29–30)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees must meet specific minimum performance requirements for total revenue to maintain their territory. These requirements increase annually, starting at $225,000 in the first year and rising to $900,000 by the fifth year. The revenue that counts toward these requirements must come from within the franchisee's protected territory.
If a Crawlspace Medic franchisee fails to meet these minimum performance requirements, it is considered a default of the franchise agreement. In such cases, Crawlspace Medic has the right to take corrective actions. Specifically, Crawlspace Medic can either reduce the size of the franchisee's territory or terminate the franchise relationship altogether.
This stipulation underscores the importance of franchisees meeting their revenue targets. Prospective Crawlspace Medic franchisees should carefully consider the feasibility of achieving these revenue goals within their designated territory. Failing to do so could result in a smaller operating area or the loss of the franchise.