Must Deck Medic customers be located within the Deck Medic franchisee's Operating Territory?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 34)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees must operate their Deck Medic business and provide services to customers located within their designated Operating Territory. The marketing efforts of the franchisee must also be targeted within this territory. However, under certain conditions, Deck Medic franchisees can provide services to customers outside their territory.
Specifically, if a franchisee does not directly solicit customers outside their Operating Territory or within another Deck Medic franchisee's territory (referred to as an "Assigned Area"), they may, with written approval from Deck Medic, provide services in an "Open Area." An Open Area is defined as a geographic area not assigned to another franchisee and located within a 10-mile radius of the franchisee's Operating Territory.
Deck Medic retains the right to direct franchisees to discontinue services in an Open Area at any time. If an Open Area becomes an Assigned Area, the franchisee must cease communication with customers previously serviced in that area and turn over all customer information to Deck Medic or another designated franchisee. These stipulations ensure that while some flexibility exists, Deck Medic maintains control over territory management and customer allocation.