What section of the Crawlspace Medic Franchise Agreement addresses termination by the franchisor with cause?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Section in Franchise Provision Agreement Summary h. "Cause" defined - non-curable Sections 17.1 and The Franchise Agreement will terminate defaults 17.2 automatically, without notice for the following defaults: insolvency; bankruptcy; written admission of inability to pay debts; receivership; levy; composition with creditors; unsatisfied final judgment for more than 30 days; or foreclosure proceeding that is not dismissed within 30 days. We may terminate the Franchise Agreement upon notice to you if you: do not open the Franchised Business within required time frames; falsify any report to us; cease operations for 5 days or more, unless your vehicle is being repaired/replaced; fail to restore and re open the Franchised Business within 120 days after a casualty; fail to comply with applicable laws; default under any lease for the premises; understate Gross Revenue two (2) or more times; fail to comply with insurance and indemnification requirements; attempt a transfer in violation of the Franchise Agreement; fail, or your legal representative fails to transfer as required upon your death or permanent disability; misrepresent or omit a material fact in applying for the Franchise; are convicted or plead no contest to a felony or crime that could damage the goodwill or reputation of the Marks or the System; receive an adverse judgment in any proceeding involving allegations of fraud, racketeering or improper trade practices or similar claim that could damage the goodwill or reputation of the Marks or the System; conceal revenues or maintain false books; create a threat or danger to public health or safety; refuse an inspection or audit by us; use the Marks, copyrighted material or Confidential Information in an unauthorized manner; make an unauthorized disclosure of Confidential Information; fail to comply with non competition covenants; default in the performance of your obligations three (3) or more times during the term or receive two (2) or more default notices in any 12-month period; default under any other agreement with us or our affiliate; have insufficient funds to honor a check or EFT two (2) or more times within any twelve (12)-month period; fail to maintain Minimum Performance Requirements in any single year of operation; or terminate the Franchise Agreement without cause.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Section 17.1 and 17.2 of the Franchise Agreement outline the conditions under which Crawlspace Medic can terminate the agreement with cause. These sections specify both non-curable defaults that lead to automatic termination without notice, and other defaults that allow Crawlspace Medic to terminate the agreement with notice.
Non-curable defaults leading to automatic termination include events such as insolvency, bankruptcy, admitting inability to pay debts, receivership, levy, making a composition with creditors, having an unsatisfied final judgment for more than 30 days, or facing a foreclosure proceeding not dismissed within 30 days.
Crawlspace Medic may terminate the Franchise Agreement with notice if the franchisee fails to open the franchised business within the required time, falsifies reports, ceases operations for five or more days (unless due to vehicle repair/replacement), fails to reopen after a casualty within 120 days, violates applicable laws, defaults on a lease, understates gross revenue two or more times, fails to meet insurance or indemnification requirements, attempts unauthorized transfers, fails to transfer the franchise upon death or disability, misrepresents facts in the franchise application, is convicted of a crime damaging the brand's reputation, receives an adverse judgment involving fraud, conceals revenues, endangers public health, refuses inspections, misuses trademarks or confidential information, violates non-competition covenants, defaults multiple times, defaults under other agreements with Crawlspace Medic, has insufficient funds for checks/EFTs multiple times, fails to maintain minimum performance requirements, or terminates the agreement without cause.