What constitutes a non-curable default for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
e violate the Franchise Agreement, except as to events of default that are not curable. | | h. | "Cause" defined-non-curable defaults | 16.A.(1), 16.A.(2) | The following are defaults that cannot be cured: three or more instances where you commit a curable default, whether or not you timely cured such default in each instance; you intentionally and knowingly refuse to comply with the terms of the Franchise Agreement, and/or the standards specifications, and/or requirements set forth in the operations manual and/or as communicated to you by us from time to time; you intentionally, knowingly, or negligently operate the Franchised Business in violation of applicable laws, rules, and regulations and, in doing so, create a foreseeable, imminent, and/or immediate threat to the health and safety of others; you abandon the Franchised Business; you or your Owners intentionally made a material |
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. Franchisee's obligations on 6, 17 You must: pay all sums that you owe to us under the termination/non-renewal Franchise Agreement and all other agreements with us;
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, certain defaults are considered non-curable, meaning Deck Medic can terminate the franchise agreement immediately without giving the franchisee an opportunity to correct the issue. These non-curable defaults include committing three or more curable defaults, regardless of whether those defaults were previously corrected. This highlights the importance of consistently adhering to the franchise agreement to avoid accumulating violations that could lead to termination.
Further, intentionally and knowingly refusing to comply with the terms of the Franchise Agreement, the standards, specifications, or requirements in the operations manual, or as communicated by Deck Medic, constitutes a non-curable default. This emphasizes the need for franchisees to fully understand and follow all guidelines set forth by Deck Medic. Operating the franchised business in violation of applicable laws, rules, and regulations in a way that creates a foreseeable, imminent, or immediate threat to the health and safety of others is also a non-curable default. This underscores the critical importance of maintaining a safe and compliant business operation.
Additional non-curable defaults include abandoning the franchised business, making intentionally misleading or false statements in submitted data or records, transferring or attempting to transfer the franchise without Deck Medic's approval, and disclosing confidential information. Dishonest or unethical conduct that impacts the Deck Medic system, breaching another agreement with Deck Medic without cure, failing to complete required training, failing to report misuse of confidential information, misappropriating the Licensed Marks, insolvency, or abandonment of the business also constitute non-curable defaults. These provisions protect Deck Medic's brand, system, and reputation, and ensure franchisees operate ethically and responsibly.