Does Deck Medic assume direct or indirect liability to a Deck Medic franchisee regarding the administration of the National Advertising Fund?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as expressly provided in this Article 9, Franchisor assumes no direct or indirect liability, responsibility, or obligation to Franchisee with respect to the maintenance, direction, and/or administration of the National Advertising Fund;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic assumes no direct or indirect liability, responsibility, or obligation to the franchisee regarding the maintenance, direction, and/or administration of the National Advertising Fund. This means that Deck Medic franchisees cannot hold Deck Medic liable for how the National Advertising Fund is managed or for the outcomes of its advertising efforts.
This lack of liability extends to various aspects of the fund's administration. Deck Medic is not obligated to ensure that advertising expenditures in any specific geographic area are proportionate to the contributions from Deck Medic businesses in that area. Furthermore, Deck Medic does not guarantee that any franchisee will directly benefit from the advertising and marketing materials developed through the National Advertising Fund in proportion to their contribution. The fund can be used to promote any type of Deck Medic business or those located in a specific region of the United States.
The document also states that the National Advertising Fund is not a trust and Deck Medic is not a trustee or fiduciary. Deck Medic can deposit and maintain the funds in its general accounts, without segregating them from other assets. Franchisees are still obligated to contribute to the fund, regardless of whether other franchisees fail to contribute or if the franchisee does not perceive a direct benefit from the fund's activities. Deck Medic may establish a council to provide guidance on the fund's administration, but this council serves only in an advisory capacity, and Deck Medic retains ultimate control.