Besides other franchisees, what other sources of competition might a Deck Medic franchisee face?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, during the term of the Franchise Agreement, provided that you are not in default of your obligations to us or our affiliates and except as to our Reserved Rights set forth below, we will not open and operate and we will not grant another franchisee the right to open and operate a Deck Medic Business within your Operating Territory.
We and our affiliates reserve to ourselves the exclusive right on any and all terms and conditions that we deem advisable and, without any compensation or consideration to you (Franchise Agreement, Article 2.D.), to engage in the following activities (our "Reserved Rights"): (a) operate and grant to others the right to develop and operate Deck Medic Businesses using the System and Licensed Marks outside your Operating Territory, as we deem appropriate and irrespective of the proximity to your Operating Territory; (b) acquire, merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as, or similar to, your Deck Medic Business, and after such acquisition, merger or affiliation, to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses of any kind, even if such businesses offer and sell products and services that are the same as or similar to a the Franchised Business (but not utilizing the Licensed Marks) within your Operating Territory; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as or similar to the Franchised Business, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate businesses that offer and sell products and services that are the same as or similar to your Deck Medic Business (but not utilizing the Licensed Marks) within your Operating Territory; (d) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including the internet, catalog sales, telemarketing, or other direct marketing sales within or outside your Operating Territory; (e) use the Licensed Marks and System to offer, sell, and provide the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business on behalf of customers of local, regional, and/or national corporate accounts such as residential property owners, commercial property owners, and insurance companies (referred to as "Corporate Accounts") within or outside your Operating Territory; and (f) use the Licensed Marks
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee may face competition from several sources. While Deck Medic states that it will not open or grant another franchise within a franchisee's operating territory, this is conditional on the franchisee remaining in compliance with the franchise agreement. Furthermore, Deck Medic retains significant rights that could lead to competition within a franchisee's territory.
Deck Medic reserves the right to engage in activities that could be competitive, such as acquiring or merging with other businesses, even those offering similar services, as long as they do not use Deck Medic's licensed marks. Deck Medic also retains the right to use alternative channels of distribution, like the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within a franchisee's territory, and the franchisee will not be compensated for these sales.
Additionally, Deck Medic reserves the right to service corporate accounts within a franchisee's territory, potentially offering the Approved Services and Products to local, regional, and/or national corporate accounts such as residential property owners, commercial property owners, and insurance companies. If a franchisee chooses not to participate in Deck Medic's Corporate Accounts Program, Deck Medic can service those accounts directly or authorize other franchisees to do so. These factors highlight that while franchisees are granted an operating territory, Deck Medic retains considerable control and the ability to operate in ways that could create competition for its franchisees.