Must the transferee complete the Crawlspace Medic Initial Training Program?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
--------------------------------| | | | Franchise | | | | Provision | Agreement | Summary | | m. | Conditions for franchisor approval of a transfer | Section 16.3 and 16.4 | Conditions include: our decision not to exercise our right of first refusal; transferee meets our then-current standards for qualifying franchisees; transferee signs our then-current form of Franchise Agreement, which may have materially different terms from your Franchise Agreement; transferee successfully complete our Initial Training Program; you have paid us and third-party creditors all amounts owed; you and the transferee sign a General Release in the form of Exhibit C to the Franchise Agreement; you shall subordinate any claims you have against the transferee to us; you will indemnify us for a period of 3 years following the transfer; our approval of the material terms and conditions of the transfer; payment of a transfer fee equal to sixty percent (60%) of the then current franchise fee for a transfer to an individual or entity that is new to the brand, or forty percent (40%) of the then current franchise fee for a transfer to an existing owner within the system, or $1,500 for a transfer between existing owner or adding a new shareholder that does not change the majority ownership, or no payment for a transfe
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, a transferee must successfully complete the Initial Training Program as a condition for the franchisor's approval of a transfer. This requirement ensures that the new franchisee is adequately trained in the Crawlspace Medic system and meets the brand's standards.
This condition is one of several that must be met for a transfer to be approved. Other conditions include that Crawlspace Medic declines to exercise their right of first refusal, the transferee meets the then-current standards for franchisees, the transferee signs the current Franchise Agreement (which may have different terms), all outstanding amounts owed to Crawlspace Medic and third-party creditors are paid, both parties sign a General Release, and the transferor subordinates any claims against the transferee to Crawlspace Medic.
Additionally, the transferor must indemnify Crawlspace Medic for three years following the transfer, Crawlspace Medic must approve the transfer's terms, and a transfer fee must be paid. The transfer fee is sixty percent of the current franchise fee for new franchisees, forty percent for existing owners, $1,500 for transfers between existing owners or adding a new shareholder without changing majority ownership, and no fee for transfers to a spouse, parent, or child upon death or disability.