What are the components of the transaction price in a standard Deck Medic franchise arrangement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (6) Franchisee, each Owner, and each Spouse must execute the General Release attached to this Agreement as Exhibit 5 releasing Franchisor, Franchisor's affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising
on, or before, the effective date of the Transfer;
- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Deck Medic Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchise agreement outlines specific fees associated with transferring a franchise. If a franchisee seeks to transfer their agreement, substantially all of the assets of the franchised business, or a controlling interest in the franchise, the transferee may be required to execute the then-current standard form franchise agreement. This new agreement would supersede the original, potentially with differing terms, although it would maintain the same Royalty Fee, Advertising Contributions, and other financial obligations.
In addition to adhering to the terms of the new franchise agreement, the transferee is responsible for upgrading the administrative office to meet Deck Medic's current standards. This includes improvements, modifications, refurbishments, renovations, remodeling, or other upgrades, all at the transferee's expense, within a timeframe specified by Deck Medic. The original franchisee remains liable for all obligations to Deck Medic as outlined in the original agreement.
Furthermore, the transferee and their managing owner, managers, or other applicable employees must complete any training programs in effect for Deck Medic franchisees. The franchisee must also pay Deck Medic a fixed transfer fee of $10,000. These stipulations ensure that any transfer of ownership maintains Deck Medic's standards and financial interests while also imposing specific financial obligations on the party acquiring the franchise.