What is the APR interest rate for direct financing of the Deck Medic franchise fee?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
we currently offer is described in the tables below:
| Finance Type | Direct – Initial | Indirect |
|---|---|---|
| Franchise Fee | ||
| Amount | $20,000 | As agreed |
| Financed | ||
| Down | $10,000 | As agreed |
| Payment | ||
| Term | 36 months | As agreed |
| Interest | 8% APR or the highest rate allowed by law | As agreed |
| Finance | None if paid in full within term | As agreed |
| Charges | ||
| Payment | $626.73 | As agreed |
| Amount | ||
| Payment Terms | $10,000 down payment due upon signing of Franchise Agreement with the outstanding balance due monthly on the second Wednesday of each month | As agreed |
| Security | Personal Guaranty; Security Agreement and UCC-1 | As agreed |
| Required | ||
| Liability Upon Default | Loss of franchise and other remedies available to use under the Franchise Agreement, security agreement and note | As agreed |
| Loss of Legal Rights on Default | Waive various notices, rights and defenses; confess judgm |
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, direct financing for the initial franchise fee includes an APR interest rate of 8%, or the highest rate allowed by law. Deck Medic may offer direct financing for the $20,000 franchise fee, but is not obligated to do so. If Deck Medic does provide financing, the franchisee is required to make a $10,000 down payment. The term for the loan is 36 months, with monthly payments of $626.73.
Deck Medic requires a personal guaranty, a security agreement, and a UCC-1 filing as security for the financing. If a franchisee defaults on the loan, Deck Medic can terminate the franchise agreement and take control of the Deck Medic business. The franchisee also waives various legal rights and defenses upon default, and may be subject to a confessed judgment.
It is important to note that Deck Medic retains the right to assign the franchisee's promissory note to a third party. While Deck Medic currently has no plans to do so, they are not obligated to remain the primary provider of financial services if such an assignment occurs. Prospective franchisees should carefully consider these terms and conditions before entering into a financing agreement with Deck Medic.