Does Deck Medic's appointment of a manager waive Deck Medic's right to terminate the franchise agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor's appointment of a manager for Franchisee's Deck Medic Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the appointment of a manager by Deck Medic for a franchisee's business does not waive Deck Medic's right to terminate the franchise agreement. Specifically, even if Deck Medic steps in to manage the business, the franchisee remains responsible for their obligations under the agreement. This includes adherence to Article 14.D, which likely outlines specific responsibilities and requirements for the franchisee.
This provision protects Deck Medic's ability to enforce the terms of the franchise agreement, even in situations where they have temporarily taken over management. It ensures that franchisees cannot avoid their contractual duties simply because Deck Medic has intervened to maintain business operations. This is a fairly common practice in franchising, as franchisors need to maintain brand standards and operational consistency across all locations, even when a franchisee is struggling or unable to manage the business effectively.
Furthermore, the FDD states that Deck Medic is not liable for any debts, losses, costs, or expenses incurred during the period they manage the business. Deck Medic also has the right to charge a reasonable fee for these management services and can discontinue them at any time. This clarifies that Deck Medic's intervention is a temporary measure to preserve the business, not an assumption of the franchisee's financial responsibilities. Franchisees should be aware that they will likely bear the costs of this management and remain liable for the business's financial obligations.