Does signing a separate franchise agreement depend on the number of Crawlspace Medic outlets?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
5.1 Valid Exercise. Developer shall exercise the development rights granted hereunder only by entering into a separate Franchise Agreement with Franchisor for each Crawlspace Medicoutlet for which a development right is granted. Developer shall execute and deliver to Franchisor, concurrently with the execution and delivery of this Agreement, Franchisor's current form of Franchise Agreement for the first Crawlspace Medic outlet to be established by Developer pursuant to the Mandatory Development Schedule. For each subsequent Crawlspace Medic outlet to be established hereunder, Developer shall execute and deliver to Franchisor Franchisor's then-current form of Franchise Agreement, which shall be presented to Developer together with Franchisor's then-current Franchise Disclosure Document. The then-current form of Franchise Agreement may differ from the current form of Franchise Agreement; provided however, the initial franchise fee for each additional outlet shall be the applicable amount set forth in in Section 4.1 hereof.
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
Yes, according to Crawlspace Medic's 2024 Franchise Disclosure Document, a separate Franchise Agreement is required for each Crawlspace Medic outlet a developer intends to open. Specifically, the document states that a developer must enter into a separate Franchise Agreement with Crawlspace Medic for each outlet for which a development right is granted.
This requirement is further detailed in the context of a Multi-Unit Development Agreement. The developer must execute Crawlspace Medic's current form of Franchise Agreement for the first outlet concurrently with the execution of the Development Agreement. For each subsequent outlet, the developer will execute Crawlspace Medic's then-current form of Franchise Agreement, which may differ from the initial agreement, although the initial franchise fee for each additional outlet will remain consistent.
This process ensures that each Crawlspace Medic location operates under a specific agreement, allowing for tailored terms and conditions as the franchise system evolves. It also allows Crawlspace Medic to maintain control over the expansion and operation of each individual franchise, while providing the developer with the opportunity to grow their business within the Crawlspace Medic system.