What is a Deck Medic franchisee prohibited from doing regarding the operation of the Franchised Business outside of the Operating Territory?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee must operate the Franchised Business from within their assigned Operating Territory and provide services to customers located within that territory. Marketing efforts must also be targeted specifically to that Operating Territory and comply with the restrictions outlined in Article 9.G of the Franchise Agreement. This means Deck Medic franchisees are generally restricted from actively seeking business outside their designated area.
However, there are exceptions. A Deck Medic franchisee may provide services to customers in an Open Area (defined as a territory not assigned to another franchisee and within a 10-mile radius of the franchisee's Operating Territory) if they do not directly solicit customers in that Open Area or within another franchisee's territory, and as long as they comply with Article 9 of the agreement. Deck Medic retains the right to direct a franchisee to discontinue services in an Open Area at any time, for any reason.
If an Open Area becomes an Assigned Area (meaning it is assigned to a new franchisee), the original Deck Medic franchisee must cease all communication with customers they previously served in that area. They must also turn over all information and records related to services provided in the Open Area to Deck Medic, or to another Deck Medic Business, for their benefit. These restrictions are designed to protect the territories of other franchisees and maintain an orderly market for Deck Medic services.