Where in the Deck Medic FDD can I find information about out-of-territory customers for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPTS]
Out of Territory Rules
- (1) Franchisee must conduct the operations of the Franchised Business from within Franchisee's Operating Territory and Franchisee must provide the Approved Services and Products on behalf of customers located within Franchisee's Operating Territory. The marketing of the Franchised Business must be targeted to Franchisee's Operating Territory and, at all times, must conform and comply with, among other things, the restrictions set forth in Article 9.G. of this Agreement;
- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of customers or potential customers outside of Franchisee's Operating Territory or, within the Operating Territory of another Deck Medic Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a customer in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with customers previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Deck Medic Business, all information and records related to the Approved Services and Products provided within the Open Area.
Nothing contained in this Article 3.I. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Territory and, in the event of any inconsistency or conflict between the terms of this Article 3.I. and Article 2, Article 2 shall take precedence and govern.
3.J. SERVICE VEHICLES
[Item 23: RECEIPTS]
"Out of Territory Customer" refers to and means a customer or potential customer of a Deck Medic Business where the customer and the location of the services and products to be provided on behalf of such customer are located outside Franchisee's Operating Territory and in an Open Area.
"Out of Territory Rules" shall have the meaning defined and set forth in Article 3.I. of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, information regarding out-of-territory customers can be found in Item 23 under the heading "Out of Territory Rules" and in the definitions section. Specifically, Article 3.I. outlines the rules for operating outside of a franchisee's designated territory. The FDD defines an "Out of Territory Customer" as a customer or potential customer of a Deck Medic Business where the customer and the location of the services and products to be provided are outside the franchisee's operating territory and in an open area.
The Deck Medic franchisee must operate and market their services within their assigned operating territory, providing services to customers located within that territory. However, a franchisee may provide services to customers in an open area surrounding their territory, provided they do not directly solicit customers outside their territory or within another Deck Medic Business's territory, and do not violate Article 9 of the agreement. The franchisor retains the right to direct the franchisee to discontinue services in an open area at any time, for any reason.
If an open area becomes an assigned territory, the Deck Medic franchisee must stop communicating with customers they previously serviced in that area. They must also turn over all information and records related to services provided in the open area to the franchisor, for the benefit of the franchisor or another Deck Medic Business. This ensures a smooth transition and protects the interests of the new franchisee in that assigned territory.
It is important to note that the terms in Article 3.I do not expand the non-exclusive franchise rights granted in Article 2, and in case of any conflict between these articles, Article 2 takes precedence. This clarifies that the out-of-territory rules are subject to the primary territorial rights granted in the franchise agreement.