Can a Deck Medic franchise agreement be terminated if the franchisee breaches an agreement with an affiliate of the franchisor?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
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
Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee must pay all sums and fees due to Deck Medic and/or its affiliates and/or suppliers for products and services, including System Supplies. This obligation arises regardless of the reason for termination.
Specifically, Article 17.A of the agreement states that upon termination, the franchisee is obligated to immediately pay all outstanding amounts to Deck Medic, its affiliates, and suppliers. This includes, but is not limited to, royalty fees, advertising contributions, and any other fees for products or services, such as System Supplies. This clause ensures that Deck Medic receives all outstanding payments at the point of termination, regardless of the circumstances leading to the termination.
While the FDD specifies the franchisee's financial obligations to Deck Medic and its affiliates upon termination, it does not explicitly state whether a breach of an agreement with an affiliate is grounds for termination. A prospective franchisee should clarify with Deck Medic under what specific circumstances a breach of agreement with an affiliate would lead to the termination of the franchise agreement.