Under what conditions can Crawlspace Medic extend the term of the agreement on a month-to-month basis?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
If applicable law requires Franchisor to give notice to Franchisee prior to the expiration of the Term, this Agreement shall remain in effect on a month-to-month basis until Franchisor has given the notice required by such applicable law.
If Franchisor is not offering new Crawlspace Medic franchises, is in the process of revising, amending or renewing Franchisor's form of franchise agreement or disclosure document, or Franchisor is not lawfully able to offer Franchisee the then current form of Renewal Franchise Agreement at the time Franchisee advises Franchisor pursuant to Paragraph 5.2 hereof that Franchisee desires to renew, Franchisor may, in Franchisor's sole discretion, (i) offer to renew this Agreement upon the same terms set forth herein for the appropriate renewal term or (ii) offer to extend the Term hereof on a month-tomonth basis following the expiration of the Term for as long as Franchisor deems necessary or appropriate so that Franchisor may lawfully offer the then current
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the franchise agreement can be extended on a month-to-month basis under specific circumstances. If applicable law requires Crawlspace Medic to give the franchisee notice prior to the expiration of the term, the agreement will remain in effect on a month-to-month basis until the required notice is given.
Additionally, Crawlspace Medic may choose to extend the term on a month-to-month basis if they are not offering new franchises, are revising their franchise agreement or disclosure document, or are not lawfully able to offer the franchisee the current renewal franchise agreement at the time the franchisee expresses their desire to renew. In such cases, Crawlspace Medic has the discretion to either offer to renew the agreement under the same terms or extend the term month-to-month as long as necessary to lawfully offer the current renewal agreement.
This provision provides Crawlspace Medic with flexibility in managing franchise agreements during periods of transition or when legal requirements necessitate additional notice. For a prospective franchisee, this means the renewal process might not always be straightforward and could be subject to delays or changes depending on the circumstances at the time of renewal. It is important to maintain open communication with Crawlspace Medic regarding renewal intentions and to understand the potential for month-to-month extensions.