What sections of the Crawlspace Medic Franchise Agreement outline the requirements for a franchisee to renew or extend the franchise?
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 Agreem |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the requirements for a franchisee to renew or extend their franchise are detailed in Sections 5.2 and 5.3 of the Franchise Agreement. To be eligible for renewal or extension, a franchisee must be in full compliance with the agreement and have no more than three events of default during the current term.
Additionally, the franchisee is required to provide written notice to Crawlspace Medic at least six months before the end of the current term. They must also execute a new franchise agreement and pay a Successor Agreement fee of $1,500. Maintaining the vehicle with proper insurance, current trade dress, and adherence to other standards is also necessary.
Furthermore, the franchisee must execute a general release and comply with the then-current qualifications and training requirements, which may include completing additional training. Crawlspace Medic may also require the franchisee to sign a new Franchise Agreement that contains materially different terms and conditions from the original agreement.