Where is the definition of 'Operating Territory' found within the Deck Medic Franchise Agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
"Operating Territory" shall have the meaning defined and set forth in Article 2.A. of this Agreement.
"Operations Manual" refers to and means, individually and collectively, the manual(s) designated by Franchisor and relating to the development and/or operations of Deck Medic Businesses including, but not limited to, the policies, procedures and requirements for the development and operation of Deck Medic Businesses.
"Franchisee's Administrative Office" refers to and means the Deck Medic Administrative Office from which Franchisee establishes, operates and manages the Franchised Business.
"Franchisee's Operating Territory" refers to and means the "Operating Territory" as such term is set forth and defined in the Franchise Agreement.
"Immediate Family" refers to and means the spouse of a person and any other member of the household of such person, including, without limitation, children
- (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the nonexclusive license, right and obligation to develop and operate a Deck Medic Business within the operating territory designated and set forth in Schedule 1 of this Agreement (the "Operating Territory"). If Schedule 1 does not specifically identify and designate an Operating Territory, and/or if Schedule 1 is not signed by Franchisor, the Operating Territory shall be determined by Franchisor in Franchisor's Reasonable Business Judgment;
- (2) The Operating Territory shall be comprised of a Territory and if, at the time of signing this Agreement, Franchisor and Franchisee agree to supplement the size of Franchisee's Operating Territory by adding an Additional Territory or Additional Territories, the Additional Territory or Additional Territories shall also be included within the Operating Territory identified in Schedule 1 and shall be quantified in Schedule 2 for purposes of calculating the Initial Franchise Fee and other obligations under this Agreement;
- (3) Franchisee's Administrative Office may be located within the Operating Territory and must be approved by Franchisor;
- (4) Franchisee may only operate the Franchised Business within Franchisee's Operating Territory and, without limitation to the foregoing, Franchisee may only offer and sell the Approved Services
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the definition of 'Operating Territory' is outlined in Article 2.A of the Franchise Agreement. The document also clarifies the meaning of 'Franchisee's Operating Territory,' stating that it refers to the 'Operating Territory' as defined in the Franchise Agreement.
Specifically, Article 2.A details that during the agreement's term, Deck Medic grants the franchisee a nonexclusive license to operate a Deck Medic Business within the designated operating territory, which is specified in Schedule 1 of the agreement. If Schedule 1 does not identify the operating territory or is not signed by the franchisor, the operating territory will be determined by the franchisor based on their reasonable business judgment.
Furthermore, the operating territory includes a primary territory, and if both parties agree to expand it by adding additional territories, these will be included in Schedule 1 and quantified in Schedule 2 for calculating the initial franchise fee and other obligations. The franchisee's administrative office may be located within the operating territory, subject to the franchisor's approval. The franchisee is restricted to operating the franchised business and offering services and products only within their designated operating territory, using authorized service vehicles and adhering to Deck Medic's system standards and operational manual requirements.