What is considered a prohibited action regarding customer solicitation outside of a Deck Medic franchisee's operating territory?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
servation of rights set forth in Article 2.D. of this Agreement. Subject to the existence of an Open Area and Franchisee's compliance with following rules and requirements ("Out of Territory Rules"), Franchisee may provide the Approved Services and Products on behalf of customers located within an Open Area:
Out of Territory Rules
- (1) Franchisee must conduct the operations of the Franchised Business from within Franchisee's Operating Territory and Franchisee must provide the Approved Services and Products on behalf of customers located within Franchisee's Operating Territory. The marketing of the Franchised Business must be targeted to Franchisee's Operating Territory and, at all times, must conform and comply with, among other things, the restrictions set forth in Article 9.G. of this Agreement;
- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of customers or potential customers outside of Franchisee's Operating Territory or, within the Operating Territory of another Deck Medic Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a customer in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with customers previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Deck Medic Business, all information and records related to the Approved Services and Products provided within the Open Area.
Nothing contained in this Article 3.I. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Territory and, in the event of any inconsistency or conflict between the terms of this Article 3.I. and Article 2, Article 2 shall take precedence and govern.
3.J. SERVICE VEHICLES
Franchisee shall purchase and/or lease and exclusively use in the operations of the Franchised Business, only those Service Vehicles that meet Franchisor's System standards and specifications, and that are approved by Franchisor. Franchisee may use their own preexisting vehicle if it meets Franchisor's standards and specifications. Franchisee shall maintain the Service Vehicles in a clean, safe, and well-maintained condition and shall operate same in accordance with all applicable laws, rules, and regulations. Franchisee may only offer and provide the Approved Services and Products using Service Vehicles approved by
Franchisor and that meet Franchisor's brand standards and specifications.
**3.K.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee is prohibited from engaging in direct solicitation of customers or potential customers outside of their designated operating territory or within the operating territory of another Deck Medic business. Direct solicitation includes communications and contacts made through in-person interactions, telephone calls, mail, electronic mail, direct mail, distributed print media, digital media, marketing media, media distribution, and any marketing efforts directed toward customers, potential customers, or referral sources. This restriction is in place to protect the territories of other franchisees and to avoid confusion among customers.
However, a Deck Medic franchisee may provide approved services and products to a customer in an open area surrounding their operating territory, provided they do not engage in direct solicitation. This is allowed unless the franchisor directs otherwise. The franchisor retains the right to instruct a franchisee to discontinue providing services in an open area at any time, for any reason.
If an open area becomes an assigned territory, the franchisee must stop communicating with customers they previously serviced in that open area. They must also turn over all information and records related to the approved services and products provided within that area to Deck Medic, for the benefit of the franchisor or another Deck Medic business. This ensures a smooth transition and protects the interests of the new franchisee in the assigned territory.
Deck Medic's restrictions on marketing outside of a franchisee's territory also stipulate that all marketing and marketing media must be directed toward the franchisee's operating territory. Franchisees cannot engage in any media distribution to customers, potential customers, or customer referral sources outside of their operating territory unless it is a joint distribution with other Deck Medic businesses authorized in writing by the franchisor, or if the franchisor agrees to it in writing based on their reasonable business judgment.