Can Deck Medic direct a franchisee to stop providing services in an Open Area?
Deck_Medic Franchise · 2024 FDDAnswer 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, franchisees may provide services in an Open Area, which is defined as a geographic area within a 10-mile radius of their Operating Territory that is not an Assigned Area. However, Deck Medic retains the right to direct a franchisee to cease providing services in an Open Area at any time.
This means that while a Deck Medic franchisee may initially have the opportunity to expand their service area into an Open Area, this is not guaranteed and can be revoked at Deck Medic's discretion. This could occur for various reasons, such as Deck Medic assigning the Open Area to another franchisee or deciding to develop it themselves.
This provision introduces a degree of uncertainty for franchisees, as their ability to serve customers in Open Areas can be terminated. Franchisees should consider this when making business plans and revenue projections, as reliance on Open Area customers could be disrupted. It is important to note that Deck Medic does not offer exclusive territories, and franchisees may face competition from other franchisees or channels of distribution controlled by Deck Medic.