What are the consequences if a Deck Medic franchisee transfers their business without approval?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
data, information, and/or records that you record and/or submit to us are intentionally misleading or false; you transfer or attempt to transfer the Franchised Business or the ownership interests in your franchise company without our approval; you disclose or permit the disclosure of information contained in the operations manual and/or of confidential information; you or your Owners engage in intentionally dishonest or unethical conduct that impacts our System; you and/or your Owners breach and, if such breach is capable of a cure, fail to timely cure another agreement with us, including the Owner and Spouse Agreement and Guaranty; you and your Owners and managers fail to complete, to our satisfaction, our initial and on-going training programs; you fail to notify us of the misuse of confidential information and you fail to protect same; you misappropriate or misuse the Licensed Marks; you are deemed insolvent, make an assignment for the benefit of creditors, admit in writing your inability to pay debts; are adjudicated bankrupt, file a voluntary bankruptcy petition or have one filed against you, and/or you acquiesce to the appointment of a trustee or receiver, or a court orders one; execution is levied against the Franchised Business; a final judgment is entered against the Franchised Business and is not satisfied within 30 days; you are dissolved; a lawsuit or action is commenced against the Franchised Business to foreclose on a lien on equipment of the Franchised Business and such action is not dismissed after 60 days; real or personal property used by the Franchised Business is sold or levied by a sheriff or other law enforcement officer; and/or you abandon or fail to continuously own and operate the Franchised Business. i.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if a franchisee transfers or attempts to transfer their franchised business or ownership interests in their franchise company without Deck Medic's approval, it constitutes a cause for termination of the franchise agreement.
This means that Deck Medic has the right to terminate the franchise agreement if a franchisee proceeds with a transfer without obtaining prior written consent from Deck Medic. The FDD specifies that transfers require Deck Medic's prior written consent, which may be granted or withheld at their discretion.
This provision protects Deck Medic by ensuring they maintain control over who operates a Deck Medic franchise. It allows Deck Medic to ensure that any new owner meets their standards and is capable of upholding the brand's reputation and operational requirements. For a prospective franchisee, this highlights the importance of adhering to the transfer process outlined in the Franchise Agreement and seeking franchisor approval before making any transfer decisions.