For a complete understanding of all rights and obligations of both the Deck Medic franchisor and franchisee, should the contract or agreement be referred to?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
"Effective Date" shall be the date set forth and referred to in the first paragraph of this Agreement.
"First Territory" refers to and means the initial/first designated Territory comprising Franchisee's Operating Territory.
"Franchised Business" refers to and means the Deck Medic Business that Franchisee shall develop and is required to establish, maintain and operate as part of the System and in accordance with the terms, conditions and obligations set forth in this Agreement and the Operations Manual. Without limitation to the foregoing, the Franchised Business shall be exclusively established, maintained, owned and operated by Franchisee within Franchisee's designated Operating Territory and in accordance with the terms of this Agreement. Shall have the same meaning as Franchisee's Deck Medic Business.
"Franchisee's Administrative Office" refers to and means Franchisee's administrative office. If Franchisee elects to conduct the administrative operations of the Franchised Business from a home office, Franchisee may do so as long as it is permitted by applicable laws and regulations.
"Franchisee's Deck Medic Business" refers to and means the Deck Medic Business that Franchisee shall operate within the Operating Territory pursuant to the terms, conditions and obligations set forth in this Agreement. Shall have the same meaning as Franchised Business.
18.O. NO CLASS ACTION OR MULTI-PARTY ACTIONS
FRANCHISOR AND FRANCHISEE AGREE THAT ALL PROCEEDINGS AND/OR LEGAL ACTIONS ARISING OUT OF OR RELATED TO THIS AGREEMENT AND/OR THE OFFER AND SALE OF THE DECK MEDIC BUSINESS FRANCHISE FROM FRANCHISOR TO FRANCHISEE, WILL BE CONDUCTED ON AN INDIVIDUAL BASIS AND NOT A CLASS-WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN FRANCHISEE, FRANCHISEE'S OWNERS, SPOUSES AND/OR GUARANTORS AND FRANCHISOR AND/OR FRANCHISOR'S AFFILIATES, OFFICERS, DIRECTORS AND/OR EMPLOYEES MAY NOT BE CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN FRANCHISOR AND ANY OTHER THIRD PARTY.
18.P. ACCEPTANCE BY FRANCHISOR
This Agreement will not be binding on Franchisor unless and until an authorized officer of Franchisor has signed it.
18.Q. OPPORTUNITY FOR REVIEW BY FRANCHISEE'S ADVISORS
Franchisor recommends that Franchisee have this Agreement and the Franchise Disclosure Document reviewed by Franchisee's lawyer, accountant, and other business advisors, prior to signing this Agreement.
Unless sooner terminated pursuant to the terms of this Agreement, the term of this Agreement will be for a period of 10 consecutive years, commencing from the Effective Date (the "Term").
If Franchisee is, at any time, a Corporate Entity, Franchisee agrees that each Owner and their respective Spouse shall execute, sign and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty attached to this Agreement as Exhibit 1 and, in doing so, among other things, will individually, jointly, and severally, guarantee Franchisee's obligations under this Agreement and personally bind themselves to confidentiality and non-competition covenants and restrictions.
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. At all times, including while Franchisee's Deck Medic Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Deck Medic Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Deck Medic Business. Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time."
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to the 2024 Deck Medic Franchise Disclosure Document, the agreement outlines the rights, duties, and obligations of both the franchisor and franchisee.
Several clauses within the agreement define key aspects of the Deck Medic franchise relationship. For example, the agreement specifies conditions under which the franchisor might appoint a manager for the franchisee's business and the obligations of the franchisee in such cases. It also details the process for transferring the franchise in the event of death or disability, including necessary approvals and conditions. The agreement further defines terms such as "Franchised Business" and "Franchisee's Deck Medic Business," clarifying the scope and operation of the franchise within the designated territory.
Additionally, the agreement includes provisions regarding confidentiality, restrictive covenants, and the term of the agreement, which is initially set for 10 years. It also addresses potential legal actions, requiring that they be conducted on an individual basis rather than as class actions. Deck Medic recommends that franchisees seek advice from legal, accounting, and business advisors before signing the agreement. The agreement also specifies that it is not binding until signed by an authorized officer of Deck Medic, Inc.
Therefore, prospective franchisees should carefully review the entire agreement, ideally with the help of legal and business professionals, to fully understand their rights and obligations. This comprehensive review will help ensure that franchisees are aware of all the terms and conditions governing their relationship with Deck Medic.