What section of the Crawlspace Medic Franchise Agreement specifies the time frame for curing defaults?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ned, in our sole discretion, to withdraw from your Territory |
| | | Section in | | |----|------------------------------------------------|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Franchise | | | | Provision | Agreement | Summary | | C. | Requirements for franchisee to renew or extend | Sections 5.2 and 5.3 | Be in full compliance, have no more than three (3) events of default during current term; provide written notice to us at least six months before the end of the term; execute a new franchise agreement; pay us a Successor Agreement fee equal of one thousand five hundred dollars ($1,500); continue to maintain the vehicle with proper insurance, current trade dress and other standards; execute a general release; comply with then-current qualifications and training requirements; including completion of additional training. You may be asked to sign a new Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. | | d. | Termination by franchisee | None | You may seek termination upon any grounds available by state law. | | e. | Termination by franchisor without cause | Section 16.7 | The Franchise Agreement will terminate upon your death or permanent disability and the Franchise must be transferred within six months to a replacement franchisee that we approve. | | f. | Termination by franchisor with cause | Article 17 | We may terminate only if you default. The Franchise Agreement describes defaults throughout. Please read it carefully. | | g. | "Cause" defined – curable defaults | Section 17.3 | You have 5 days to cure non-payments and any other defaults (except for non-curable defaults listed in the Franchise Agreement and described in h. immediately below). |
Section in Franchise Provision Agreement Summary h.
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 17.3 of the Franchise Agreement outlines the cure period for defaults. It states that a franchisee has 5 days to cure non-payments and any other defaults, except for those defaults that are listed as non-curable within the Franchise Agreement.
This means that if a Crawlspace Medic franchisee fails to make a payment or violates another term of the agreement (that is not listed as non-curable), they will have a 5-day window to correct the issue and avoid termination of the franchise agreement. It is important to note that certain defaults, as defined elsewhere in the agreement, may not be curable, leading to immediate termination.
It is critical that prospective Crawlspace Medic franchisees carefully review Article 17 and related sections of the Franchise Agreement to fully understand what constitutes a default and whether such defaults are curable or non-curable. Understanding these provisions is essential for maintaining compliance and protecting their investment in the franchise.