What is the definition of 'Prohibited Activities' for a Deck Medic franchisee?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
"Prohibited Activities" refers to and means any or all of the following: (a) owning and/or having any legal or equitable interest (whether as an individual proprietor or as an owner, partner, member or shareholder of a Corporate Entity or, in any similar capacity) in a Competitive Business (other than owning an interest of 3% or less in a publicly traded company that is a Competitive Business); (b) operating, managing, funding and/or performing services (whether as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or in any similar capacity) for a Competitive Business; (c) diverting or attempting to divert any business or customers from us (or one of our affiliates or franchisees); and/or (d) inducing any customer or client of ours (or of one of our affiliates or franchisees) or of Franchisee to any other person or business that is not a Deck Medic Business.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, "Prohibited Activities" are defined as actions a franchisee cannot engage in during the term of the Franchise Agreement. These include owning or having a legal or equitable interest in a Competitive Business, with a minor exception for owning 3% or less of a publicly traded company that is a Competitive Business.
The definition extends to operating, managing, funding, or performing services for a Competitive Business, whether as an employee, officer, director, manager, consultant, representative, agent, or creditor. Additionally, franchisees are prohibited from diverting or attempting to divert business or customers from Deck Medic, its affiliates, or other franchisees.
Furthermore, a Deck Medic franchisee cannot induce any customer or client of Deck Medic, its affiliates, or other franchisees to another business that is not a Deck Medic Business. Engaging in these Prohibited Activities is considered unfair competition and can cause harm to Deck Medic, the System, and other Deck Medic Business franchisees. These restrictions also apply to the franchisee's Owners and Spouses, who are required to sign a Franchise Owner and Spouse Agreement and Guaranty.