Are there restrictions on Crawlspace Medic franchisee sales outside the Territory?

According to Crawlspace Medic's 2024 Franchise Disclosure Document, franchisees face certain restrictions regarding sales both within and outside of their designated territory. Item 16 and Item 12 of the FDD address these limitations. Specifically, Item 16 refers to Item 12 for details on sales restrictions within and outside the territory. This indicates that while franchisees are granted a territory, their ability to sell outside of it is subject to certain constraints defined by Crawlspace Medic.

Item 12 states that Crawlspace Medic and its affiliates retain the right to sell products and services under the brand's marks both within and outside the franchisee's territory through methods other than a dedicated Crawlspace Medic outlet. These alternative distribution channels include online sales and licensing designs. The franchisee will not receive any compensation for sales made through these alternative channels within their territory. This means that Crawlspace Medic can operate other businesses or channels that compete with the franchisee, even within the franchisee's territory, without providing any financial benefit to the franchisee.

Furthermore, the Franchise Agreement does not grant franchisees any exclusive rights to participate in these alternative distribution channels. The franchisee's territory is not exclusive, meaning they may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Crawlspace Medic. This lack of exclusivity and the reservation of rights by Crawlspace Medic to operate alternative distribution channels can significantly impact a franchisee's potential market and revenue, as they may face competition from various sources, including the franchisor itself, within and outside their territory.