Under what conditions will Crawlspace Medic prevent other franchisees from operating a franchised location within a franchisee's territory?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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 a franchisee the right to operate their franchised business at a single location within a designated territory. Crawlspace Medic assures that it will not allow other franchisees to operate a Crawlspace Medic location within the franchisee's territory, using the same marks, as long as the franchisee remains in compliance with the agreement. This protection remains in effect as long as the Franchise Agreement has not expired or been terminated.
However, Crawlspace Medic retains the right to open, operate, or franchise Crawlspace Medic franchises around, bordering, and adjacent to the franchisee's territory. The franchisee is restricted to selling products and services from a location within their territory and providing services to customers within that territory. Franchisees are not allowed to sell and solicit customers through alternative distribution channels.
Crawlspace Medic also reserves the right to offer other products or services not offered under the marks, 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").