Can the exclusive designated supplier for Deck Medic franchisees be the franchisor or its affiliates?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
At all times, Franchisee and the Franchised Business shall, as designated by Franchisor in the Operations Manual and/or as otherwise designated by Franchisor in writing and, as may be modified by Franchisor from time to time: (a) exclusively offer and sell the Approved Services and Products; (b) exclusively purchase and use the System Supplies
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees are required to exclusively purchase and use 'System Supplies.' The FDD specifies that franchisees must exclusively offer and sell approved services and products, and exclusively purchase and use system supplies as designated by Deck Medic in the operations manual or in writing, which may be modified from time to time.
This means that Deck Medic has the authority to determine the suppliers from which franchisees must purchase their supplies. While the FDD excerpts provided do not explicitly state that Deck Medic or its affiliates can be the exclusive designated supplier, it does state that franchisees must purchase system supplies exclusively.
Prospective franchisees should clarify with Deck Medic whether the franchisor or its affiliates can act as a designated supplier, and if so, what percentage of supplies are sourced directly from Deck Medic or affiliated entities. Understanding the sourcing and supply chain is crucial for assessing costs, quality control, and potential conflicts of interest.