What standards must a Crawlspace Medic franchisee adhere to when controlling day-to-day operations?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.1.2 No Relationship.
Franchisee acknowledges and agrees that Franchisee alone exercises day-to-day control over all operations, activities, and elements of the Franchised Business, and that under no circumstance shall Franchisor do so or be deemed to do so.
Franchisee further acknowledges and agrees, and will never claim otherwise, that the various restrictions, prohibitions, specifications, and procedures of the System which Franchisee is required to comply with under this Agreement, whether set forth in Franchisor's Operations Manual or otherwise, does not directly or indirectly constitute, suggest, infer or imply that Franchisor controls any aspect or element of the day-to-day operations of the Franchised Business, which Franchisee alone controls, but only constitute standards Franchisee must adhere to when exercising control of the day-to-day operations of the Franchised Business.
- 21.1.3 Franchisee's Employees.
Franchisee acknowledges and agrees that any training Franchisor provides for Franchisee's employees is geared to impart to those employees, with Franchisee's ultimate authority, the various procedures, protocols, systems, and operations of a Crawlspace Medic outlet and in no fashion reflects any employment relationship between Franchisor and such employees.
If ever it is asserted that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agree to assist Franchisor in defending said allegation, appearing at any venue requested by Franchisor to testify on Franchisor's behalf participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, while the franchisee has control over the day-to-day operations of their business, they must still adhere to certain standards. Crawlspace Medic does not directly control the day-to-day activities of the franchised business. Instead, the franchisee is solely responsible for these operations. However, franchisees must comply with the restrictions, specifications, and procedures outlined in Crawlspace Medic's Operations Manual and other directives. These standards do not imply direct control by Crawlspace Medic but rather define the framework within which the franchisee must operate.
Crawlspace Medic also provides training for the franchisee's employees, which is designed to educate them on the procedures, protocols, systems, and operations of a Crawlspace Medic outlet. This training does not create an employment relationship between Crawlspace Medic and the franchisee's employees; the franchisee retains ultimate authority over their staff. The franchisee is responsible for ensuring their employees follow the standards and procedures set forth by Crawlspace Medic.
Furthermore, the FDD stipulates that the franchisee must defend Crawlspace Medic against any claims asserting that Crawlspace Medic is the employer, joint employer, or co-employer of the franchisee's employees. This underscores the franchisor's intention to maintain an arm's-length relationship with the franchisee's staff and reinforces the franchisee's role as the primary controller of daily operations, subject to adherence to the brand's operational standards.