How are Additional Territories quantified for a Deck Medic franchise, and what is the purpose of this quantification?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
forth in Schedule 1 of this Agreement (the "Operating Territory"). If Schedule 1 does not specifically identify and designate an Operating Territory, and/or if Schedule 1 is not signed by Franchisor, the Operating Territory shall be determined by Franchisor in Franchisor's Reasonable Business Judgment;
- (2) The Operating Territory shall be comprised of a Territory and if, at the time of signing this Agreement, Franchisor and Franchisee agree to supplement the size of Franchisee's Operating Territory by adding an Additional Territory or Additional Territories, the Additional Territory or Additional Territories shall also be included within the Operating Territory identified in Schedule 1 and shall be quantified in Schedule 2 for purposes of calculating the Initial Franchise Fee and other obligations under this Agreement;
- (3) Franchisee's Administrative Office may be located within the Operating Territory and must be approved by Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the quantification of Additional Territories is documented in Schedule 2 of the Franchise Agreement. If a franchisee and Deck Medic agree to expand the operating territory by adding one or more Additional Territories at the time of signing the agreement, these territories are included in the Operating Territory and quantified in Schedule 2.
The primary purpose of quantifying these Additional Territories is to calculate the Initial Franchise Fee and other obligations under the agreement. Schedule 2 includes a section where the franchisee's operating territory is designated as either a "Single Territory Only" or a "Single Territory PLUS Additional Territory/Territories." If the latter is chosen, the number of Additional Territories and the total number of territories are specified.
This quantification is important because the Initial Franchise Fee is directly tied to the size of the operating territory. By clearly defining and quantifying the Additional Territories, Deck Medic ensures that the franchisee pays the appropriate fee for the market area they are granted. This process provides transparency and clarity in the financial obligations of the franchise agreement, ensuring both parties are aligned on the scope of the territory and associated costs.