How are credit card processing fees generally determined for a Deck Medic franchise?

According to Deck Medic's 2024 Franchise Disclosure Document, franchisees must use the franchisor's designated supplier and vendor for credit card processing, which may be integrated with the point of sale system that Deck Medic designates. Credit card processing fees are generally based on a percentage of all credit card processed Gross Sales.

This means that a Deck Medic franchisee's cost for processing credit card payments will fluctuate depending on their sales volume. As sales increase, the total amount paid in credit card processing fees will also increase. This is a common arrangement in franchising, as it aligns the vendor's income with the franchisee's success.

It is important for prospective Deck Medic franchisees to understand that they do not have the option to shop around for a credit card processing vendor with potentially lower fees. They are obligated to use Deck Medic's designated supplier. Franchisees should inquire about the specific percentage charged by the designated vendor to accurately forecast their operating expenses. Understanding this percentage is crucial for financial planning and profitability analysis.

While the FDD specifies that fees are based on a percentage of gross sales, it does not provide the exact percentage amount. Therefore, prospective franchisees should ask Deck Medic for specific details regarding the current percentage rate charged by their designated credit card processing vendor to better understand the potential costs.