Under what conditions will Crawlspace Medic not permit other franchisees to operate in the franchisee's territory?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Territory. This Agreement grants Franchisee the right to operate the Franchised Business at a single location within the Territory. Franchisor agrees that Franchisor will not, and Franchisor will not permit any other of our franchisees, to operate a franchised Crawlspace Medic location in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not expired or been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Crawlspace Medic franchises around, bordering and adjacent to the Territory. Franchisee will be selling its products and services from a location within the territory, and will provide services to customers within that territory. Franchisee is prohibited from selling and soliciting customers through alternative distribution channels as more fully specified herein.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, Crawlspace Medic grants the franchisee the right to operate their franchised business at a single location within a designated territory. Crawlspace Medic assures the franchisee that neither they nor any other franchisee will be allowed to operate another Crawlspace Medic franchise within the franchisee's territory, using the same marks.
However, this assurance is conditional. Crawlspace Medic is only obligated to prevent other franchises from operating in the franchisee's territory as long as the franchisee remains in compliance with the Franchise Agreement. Specifically, the franchisee must not be in default under the agreement, and the agreement must not have expired or been terminated.
It is important to note that Crawlspace Medic retains the right to open, operate, or franchise Crawlspace Medic franchises around, bordering, and adjacent to the franchisee's territory. Additionally, Crawlspace Medic reserves the right to offer other products or services not offered under the Crawlspace Medic marks, or other crawlspace or basement care and repair concepts under the marks or other trademarks, including licensing Franchisor's designs for use in other formats and products or services through any channel in the Territory other than a dedicated Crawlspace Medic location, such as the Internet ("Alternate Distribution Channels").