During the term of the Crawlspace Medic agreement, can a franchisee participate in a crawlspace or basement service business similar to the Crawlspace Medic system?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
In consideration for such specialized training, trade secrets, Confidential Information and rights, Franchisee and each Principal, if any, covenant that, except as otherwise approved in writing by Franchisor:
- 19.5.1.
During the term of this Agreement, Franchisee and each Principal, if any, shall not, either directly or indirectly, for themselves or through, on behalf of, or in conjunction with, any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any crawlspace or basement service business similar to the System; or (iii) seek to employ any person who is at that time employed by Franchisor or otherwise induce such person to leave his or her employment; or (iv) do or
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees are restricted from participating in similar businesses during the term of their agreement. Specifically, franchisees cannot be involved as an owner, partner, director, officer, employee, consultant, or agent in any crawlspace or basement service business similar to the Crawlspace Medic system.
This restriction applies to any direct or indirect participation, whether for themselves or in conjunction with another person or entity. The purpose of this restriction is to prevent franchisees from diverting business or customers away from the Crawlspace Medic system to a competitor.
This non-compete clause protects Crawlspace Medic's interests by ensuring that franchisees focus solely on developing their franchised business and do not use the franchisor's confidential information and resources to benefit a competing business during the term of the agreement. Violation of this clause could result in legal action and potential termination of the franchise agreement.