What agreement must a Franchisee enter into with Franchisor regarding the transferee's obligations during a Deck Medic franchise transfer?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (6) Franchisee, each Owner, and each Spouse must execute the General Release attached to this Agreement as Exhibit 5 releasing Franchisor, Franchisor's affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising
on, or before, the effective date of the Transfer;
- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Deck Medic Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if a proposed transfer includes the transfer of the Franchise Agreement, substantially all of the assets of the franchised business, a controlling interest in the franchisee, or is one of a series of transfers that in the aggregate transfers substantially all of the assets of the franchised business or a controlling interest in the franchisee, then Deck Medic has the option to require the transferee to execute the then-current standard form Franchise Agreement offered to new franchisees. This agreement would be for a term ending on the expiration date of the original term of the agreement.
This new agreement would supersede the original agreement in all respects. The terms of Deck Medic's current agreements may differ from the terms in the original agreement, but the new agreement must provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in the original agreement.
In addition to the new agreement, the transferee, at its own expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade the franchisee's non-residential Administrative Office to conform to Deck Medic's then-current standards and specifications. These upgrades must be completed within the timeframe that Deck Medic reasonably specifies. The transferee, along with its managing owner, managers, and any other applicable employees, must also complete any training programs then in effect for franchisees, under the terms and conditions set forth in the Franchise Agreement or as Deck Medic reasonably requires.