factual

What defines an 'Open Area' in relation to a Deck Medic franchise's Operating Territory?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (c) An "Open Area" is a geographic area that (i) is not an Assigned Area; and (ii) is located within a 10 mile radius of your Operating Territory;
  • (d) Unless otherwise directed by us at any time, from time to time, and in our sole direction, you may provide Approved Services and Products to a customer (an "Out of Territory Customer") in an Open Area; and
  • (e) Once an Open Area becomes an Assigned Area you will no longer be authorized or eligible to provide Approved Services and Products to any customers within the Open Area and you must turn over to us, for the benefit of another Deck Medic Business franchisee, all information and records related to customers in the Open Area.

Source: Item 12 — TERRITORY (FDD pages 29–32)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, an "Open Area" is defined as a geographic area that is not an Assigned Area and is located within a 10-mile radius of a franchisee's Operating Territory. An Assigned Area is the operating territory of another Deck Medic Business. Unless Deck Medic directs otherwise, a franchisee may provide Approved Services and Products to a customer in an Open Area.

However, this authorization is subject to change. Once an Open Area becomes an Assigned Area, the franchisee is no longer authorized to provide services to customers in that area. Furthermore, the franchisee must turn over all customer information and records related to customers in the Open Area to Deck Medic for the benefit of another franchisee.

This policy means that while Deck Medic franchisees have the opportunity to service customers outside their primary territory in these Open Areas, this is not a guaranteed right. Deck Medic retains the authority to reassign these areas, potentially impacting a franchisee's customer base and revenue. Franchisees need to stay informed about territory assignments and be prepared to relinquish customers if an Open Area is reassigned.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.