factual

Can Crawlspace Medic sell its assets and rights to the Crawlspace Medic Marks and System?

Crawlspace_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 16.1.2. Franchisee agrees that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of the facilities (which Franchisee acknowledges may be within the Territory, proximate thereto, or proximate to any of Franchisee's locations). However, Franchisor represents that it will not convert any such acquired facilities that are operating within the Territory to a Crawlspace Medic franchise during the Term of this Agreement.
  • 16.1.3. If Franchisor assigns its rights in this Agreement, nothing herein shall be deemed to require Franchisor to remain in the crawlspace or basement care business or to offer or sell any products or services to Franchisee.
  • 16.2. Restrictions on Transfers by Franchisee. Franchisee's rights and duties under this Agreement are personal to Franchisee as it is organized and with the Principals of the business as they exist on the date of execution of this Agreement, and Franchisor has made this Agreement with Franchisee in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee. Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval. Franchisor may void any transfer made without such approval.

Source: Item 22 — CONTRACTS (FDD page 42)

What This Means (2024 FDD)

According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic has the right to purchase, merge, acquire, or affiliate with another business. Crawlspace Medic can operate, franchise, or license these businesses under the Crawlspace Medic marks or other marks after the purchase, merger, acquisition, or affiliation.

Crawlspace Medic also retains the right to assign its rights in the agreement, and is not required to remain in the crawlspace or basement care business or offer or sell any products or services to the franchisee if it assigns its rights.

However, if a franchisee wishes to transfer their rights, they must obtain prior written approval from Crawlspace Medic. Crawlspace Medic may void any transfer made without such approval, as the agreement is personal to the franchisee and relies on Crawlspace Medic's perception of their character, skills, and abilities.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.