What are some examples of Non-Compliance Fees that a Deck Medic franchisee might incur?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
echnology Fee in a monthly amount designated by Franchisor but provided that such monthly amount does not exceed $500 per month. Franchisee agrees that this Technology Fee is a general administrative fee and is not connected to any particular service. The Technology Fee shall be paid to Franchisor each and every month on the Due Date.
5.D. OTHER FEES
As designated by Franchisor in this Agreement, the Manual or otherwise, Franchisee shall pay the following additional fees to either Franchisor, Franchisor's affiliate(s), or Franchisee's designee(s):
- (1) National Advertising Fund Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, the National Advertising Fund Fee as set forth in Article 9.A. of this Agreement.
- (2) Customer Satisfaction Non-Compliance Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, a Customer Satisfaction Non-Compliance Fee upon demand of Franchisor following the occurrence of a Customer Satisfaction Non-Compliance Event.
- (3) Non-Compliance Fees Franchisee shall pay to Franchisor all Non-Compliance Fees in accordance with the terms of this Agreement including, but not limited to, Payment Non-Compliance Fees, Operations Non-Compliance Fees, and Reporting Non-Compliance Fees.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees may incur several types of non-compliance fees. These include a Customer Satisfaction Non-Compliance Fee, which is levied if the franchisee's monthly customer satisfaction ratings fall below 4.5 stars out of 5 or a 90% positive satisfaction rating. This fee starts at $250 per month but can increase to $750 per month if the non-compliance lasts for more than three consecutive months.
In addition to the Customer Satisfaction Non-Compliance Fee, franchisees may also be subject to Payment Non-Compliance Fees, Operations Non-Compliance Fees, and Reporting Non-Compliance Fees. The specific details for these fees are determined by the terms of the franchise agreement.
Furthermore, if a Deck Medic franchisee fails to attend the Annual System Conference, Deck Medic may still charge the Annual Conference Attendance Fee, even if the fee is waived for franchisees who do attend. Franchisees are responsible for all expenses for attending the Annual System Conference including travel, meals, and lodging.