Does the Deck Medic Franchise Agreement require an Owner and Spouse Agreement and Guaranty?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee is, at any time, a Corporate Entity, Franchisee agrees that each Owner and their respective Spouse shall execute, sign and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty attached to this Agreement as Exhibit 1 and, in doing so, among other things, will individually, jointly, and severally, guarantee Franchisee's obligations under this Agreement and personally bind themselves to confidentiality and non-competition covenants and restrictions.
Franchise Agreement Exhibit 1 Owner and Spouse Agreement and Guaranty
OWNER AND SPOUSE AGREEMENT AND GUARANTY
This Franchise Owner and Spouse Agreement and Individual Guaranty (the "Agreement") is individually entered into by you as either an owner of __________________________ (hereinafter referred to as "Franchisee"), Franchisee, or the spouse of the owner of franchisee and is given and signed by you in favor of Deck Medic, Inc., franchisor of the Deck Medic franchise system and in favor of Deck Medic, Inc.'s successors and assigns, upon the terms and conditions set forth in this Agreement. In this Agreement Deck Medic, Inc. is referred to as "us", "our" or "we", and each individual that signs this Agreement is referred to as "you".
Recitals and Representations
WHEREAS, Franchisee has entered into a Deck Medic Franchise Agreement (the "Franchise Agreement") for the development and operation of a Deck Medic Business (the "Franchised Business" or "Brand Name Business") that offers and provides professional outdoor wood restoration and power washing services, and related services and products (the "Approved Services and Products") under the Licensed Marks (defined below);
WHEREAS, you represent that you have received and have thoroughly reviewed the completed Franchise Agreement, including Schedules and Exhibits attached to the Franchise Agreement;
WHEREAS, we have recommended that you thoroughly review the Franchise Agreement, this Agreement and all exhibits and schedules to the Franchise Agreement with a lawyer selected and hired by you;
Source: Item 22 — CONTRACTS (FDD pages 42–43)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if the franchisee is a corporation or other legal entity, each owner and their respective spouse must execute and deliver to Deck Medic the Franchise Owner and Spouse Agreement and Guaranty, which is attached to the Franchise Agreement as Exhibit 1. By signing this agreement, they guarantee the franchisee's obligations under the Franchise Agreement. They also agree to be personally bound by confidentiality and non-competition covenants and restrictions. This requirement ensures that Deck Medic has recourse to the personal assets of the owners and their spouses if the franchise fails to meet its financial or other obligations.
Furthermore, the Franchise Owner and Spouse Agreement and Individual Guaranty is entered into by the owner of the franchisee or the spouse of the owner. This agreement is made in favor of Deck Medic, including its successors and assigns, based on the terms and conditions outlined in the agreement. The document states that the franchisee has entered into a Deck Medic Franchise Agreement for the development and operation of a Deck Medic Business. This business offers professional outdoor wood restoration and power washing services, along with related services and products, under the licensed marks.
This agreement also confirms that the individuals signing it have thoroughly reviewed the Franchise Agreement, including all schedules and exhibits. Deck Medic recommends that these individuals consult with a lawyer of their choosing to review the Franchise Agreement, the Owner and Spouse Agreement, and all related documents. This recommendation underscores the importance of understanding the legal and financial obligations being undertaken by the owners and their spouses. The inclusion of a spouse in the guaranty is a notable aspect, as it directly involves marital assets in the performance of the franchise agreement.