factual

Can Deck Medic or its affiliates be designated as the exclusive supplier for the Deck Medic System?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

tricted Purchases and Leases – Generally**

We require that you purchase or lease certain source restricted goods and services for the development and operation of your Deck Medic Business. Source restricted goods and services are goods and services that must meet our specifications and/or must be purchased from an approved or designated supplier. We may designate a supplier (which may include us or our affiliates) as the exclusive supplier for the System. Our specifications and list of approved and designated suppliers is contained in our Manuals. We will notify you of any changes to our specifications or list of approved or designated suppliers. We may notify you of these changes in various ways, including written or electronic correspondence, amendments and updates to our Manuals, verbal and other forms of communication. If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval. We formulate and modify our standards and specifications for products and services based on our industry experience and our management decisions as to the overall operation and expansion of the System or as we may otherwise designate and approve in writing.

Suppliers and Supplier Criteria

We may designate ourselves and our affiliates as exclusive suppliers of source restricted goods and services. We may designate ourselves or a third party as exclusive supplier irrespective of the existence of competing suppliers. If, in the Manuals, we do not designate a supplier for a particular item, you will purchase all such products, supplies and services from suppliers who meet our specifications and standards.

Our affiliate, DM Supplies is currently designated as an approved supplier of certain inventory items, including semi-transparent oil-based stains and stripping/cleaning products. Except for DM Supplies, currently, we are not and our affiliates are not approved suppliers of the source restricted goods and services identified below. Except as to DM Supplies, no officer of ours currently owns an interest in any of our designated suppliers.

If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a supplier review and testing fee and we may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60 days, after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic or its affiliates can be designated as the exclusive supplier for the Deck Medic System. Deck Medic requires franchisees to purchase or lease certain source restricted goods and services, which are goods and services that must meet Deck Medic's specifications and/or must be purchased from an approved or designated supplier. Deck Medic may designate a supplier, including themselves or their affiliates, as the exclusive supplier for the System.

If Deck Medic does not designate a supplier in the Manuals for a particular item, franchisees must purchase those products, supplies, and services from suppliers who meet Deck Medic's specifications and standards. Deck Medic may negotiate purchase agreements with designated suppliers for source restricted goods and services on behalf of the System and may establish preferred vendor programs, potentially limiting the number of approved vendors or designating one vendor as the sole supplier.

Currently, Deck Medic's affiliate, DM Supplies, is an approved supplier of certain inventory items, including semi-transparent oil-based stains and stripping/cleaning products. Except for DM Supplies, Deck Medic and its affiliates are not currently approved suppliers of other source restricted goods and services. Deck Medic estimates that purchases from designated exclusive suppliers will represent approximately 90% of a franchisee's total purchases and leases in establishing the Franchised Business and approximately 90% of the ongoing operating expenses.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.