When is the down payment due for the Deck Medic franchise agreement when directly financed?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
we currently offer is described in the tables below:
| Finance Type | Direct – Initial | Indirect |
|---|---|---|
| Franchise Fee | ||
| Amount | $20,000 | As agreed |
| Financed | ||
| Down | $10,000 | As agreed |
| Payment | ||
| Term | 36 months | As agreed |
| Interest | 8% APR or the highest rate allowed by law | As agreed |
| Finance | None if paid in full within term | As agreed |
| Charges | ||
| Payment | $626.73 | As agreed |
| Amount | ||
| Payment Terms | $10,000 down payment due upon signing of Franchise Agreement with the outstanding balance due monthly on the second Wednesday of each month | As agreed |
| Security | Personal Guaranty; Security Agreement and UCC-1 | As agreed |
| Required | ||
| Liability Upon Default | Loss of franchise and other remedies available to use under the Franchise Agreement, security agreement and note | As agreed |
| Loss of Legal Rights on Default | Waive various notices, rights and defenses; confess judgm |
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if Deck Medic offers direct financing for the initial franchise fee, a down payment of $10,000 is due upon signing the Franchise Agreement. The remaining balance is then due monthly on the second Wednesday of each month. The financed amount for the franchise fee is $20,000.
This means that a prospective Deck Medic franchisee needs to have $10,000 available at the time of signing the franchise agreement. The franchisee will then be responsible for making monthly payments of $626.73. The interest rate on the financed amount is 8% APR, or the highest rate allowed by law, over a term of 36 months.
In addition to the down payment and monthly payments, Deck Medic requires a personal guaranty, a security agreement, and a UCC-1 filing as security for the financing. Failure to meet these financial obligations could result in the loss of the franchise and other remedies available to Deck Medic under the Franchise Agreement, security agreement, and note. The franchisee also waives various notices, rights, and defenses and confesses judgment.