What fees or purchases can Deck Medic debit from the franchisee's account?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
"Customer Satisfaction Non-Compliance Fee" refers to and means a fee payable by Franchisee in an amount equal to not less than $250 per month. If a Customer Satisfaction Non-Compliance Event(s) occurs or lasts for more than three consecutive months then Franchisor, in Franchisor's Reasonable Business Judgment, may increase the Customer Satisfaction Non-Compliance Fee to a monthly amount determined by Franchisor but not in excess of $750 per month. The Customer Satisfaction Non-Compliance Fee is payable by Franchisee to Franchisor on demand by Franchisor.
The payment of all payments, amounts, fees, charges and other financial obligations payable by Franchisee to Franchisor pursuant to this Agreement, and Franchisee's observance and performance of all terms and conditions of this Agreement, are guaranteed pursuant to The Franchise Owner and Spouse Agreement and Guaranty attached to this Agreement as Exhibit 1.
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or
Franchisee agrees that the National Advertising Fund may be used to pay various costs and expenses of Franchisor for such reasonable salaries, wages, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration, activities and/or the brand awareness goals of the National Advertising Fund including expenses incurred by Franchisor for advertising, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Business Management Systems, upgrades to the System Website, development of Digital Media and creative development that is internally administered or prepared by Franchisor and other marketing activities made by Franchisor, provided, however, that salary expenses for Franchisor's personnel paid by the National Advertising Fund shall be commensurate with the amount of that time spent by such personnel on National Advertising Fund matters.
Franchisor has the right to charge a reasonable fee (the "Management Service Fees") for such management services and may cease to provide management services at any time."
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, there are several instances where fees or payments can be debited from a franchisee's account. If Deck Medic appoints a manager to oversee a franchisee's Deck Medic Business, Deck Medic can charge a reasonable fee for these management services. Additionally, if a franchisee's customer satisfaction ratings fall below the required threshold, Deck Medic can charge a Customer Satisfaction Non-Compliance Fee. 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. Upon termination or expiration of the franchise agreement, Deck Medic is entitled to receive all outstanding sums and fees, including Royalty Fees, Advertising Contributions, and payments for products and services like System Supplies.
These financial obligations are secured by a guaranty, as outlined in the Franchise Owner and Spouse Agreement and Guaranty. This means that the franchisee's financial responsibilities are not only a contractual obligation but also a guaranteed payment. The National Advertising Fund, which franchisees contribute to, can be used by Deck Medic to cover various costs related to advertising, marketing, and brand awareness. These costs may include salaries, administrative expenses, and overhead associated with managing the fund and developing marketing programs.
It is important to note that Deck Medic has the discretion to manage the National Advertising Fund and is not obligated to segregate these funds from its general accounts. Furthermore, Deck Medic-owned businesses are not required to contribute to the National Advertising Fund, which may create a disparity in financial obligations between franchised and company-owned locations. Franchisees should be aware of these potential debits and ensure they understand the conditions under which they may be applied, as well as the implications for their overall financial obligations to Deck Medic.