How does Deck Medic collect the royalty fee?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | | | Remarks | | (Note 1) | | | | | Royalty (Note 2 and 3) | 6% of Gross Sales | Monthly on the second Wednesday of each month | Will be debited automatically from your bank account by ACH or other means designated by us.
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. Payment is subject to our specification and instruction, including, our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Deck Medic Business into the designated bank accounts that are subject to our ACH authorization. You must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Deck Medic Business. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the royalty fee, which is 6% of monthly Gross Sales, will be automatically debited from the franchisee's bank account via ACH or other means designated by Deck Medic. This payment is due monthly on the second Wednesday of each month.
Deck Medic requires franchisees to sign an ACH Authorization Form, which is included as Exhibit 4 in the Franchise Agreement. This form permits Deck Medic to electronically debit the franchisee's designated bank account for all fees payable to them or their affiliates. Franchisees must deposit all Gross Sales from their Deck Medic business into bank accounts subject to this ACH authorization.
To facilitate these electronic transactions, Deck Medic mandates that franchisees install and use pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems that Deck Medic designates. Franchisees are responsible for covering all service charges and fees imposed by their bank to ensure Deck Medic can successfully debit the account. This ensures that Deck Medic receives the full royalty fee without deductions for bank charges.