Under the Crawlspace Medic agreement, is the developer considered an agent of the franchisor?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
11.1 Independent Licensee. Developer is and shall be an independent licensee under this
Agreement, and no partnership shall exist between Developer and Franchisor. This Agreement does not constitute Developer as an agent, legal representative, or employee of Franchisor for any purpose whatsoever, and Developer is not granted any right or authority to assume or create any obligation for or on behalf of, or in the name of, or in any way to bind Franchisor. Developer agrees not to incur or contract any debt or obligation on behalf of Franchisor or commit any act, make any representation or advertise in any manner which may adversely affect any right of Franchisor or be detrimental to Franchisor or other developers or franchisees of Franchisor. Pursuant to the above, Developer agrees to indemnify Franchisor and hold Franchisor harmless from any and all liability, loss, attorney's fees, or damage Franchisor may suffer as a result of claims, demands, taxes, costs or judgments against Franchisor arising out of the relationship hereby established which specifically, but not exclusively, includes costs, losses, expenses, attorneys fees relative to assignment or the transfer of right to develop and transactional costs relative thereto, defaults under any leases, subleases, notes, receipt of revenues or any other relationships arising directly or indirectly out of the development and operation of the Crawlspace Medic outlets.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the developer is explicitly defined as an independent licensee and not an agent of the franchisor. The agreement specifies that no partnership exists between the developer and Crawlspace Medic.
Specifically, the document states that the agreement does not constitute the developer as an agent, legal representative, or employee of Crawlspace Medic for any purpose. The developer lacks any right or authority to assume or create obligations on behalf of Crawlspace Medic, nor can they bind the franchisor in any way.
The Crawlspace Medic developer agrees not to incur any debt or obligation on behalf of the franchisor. They also agree not to make any representation or advertisement that may adversely affect any right of Crawlspace Medic or be detrimental to Crawlspace Medic or its other developers or franchisees. The developer is obligated to indemnify Crawlspace Medic from any liability, loss, attorney's fees, or damage resulting from claims against Crawlspace Medic arising out of their relationship.