factual

May a Deck Medic franchisee receive material benefits for using designated or approved suppliers?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

cted products or services that you must join. You may receive material benefits for using our designated or approved suppliers.

Our Right to Receive Compensation and Our Revenue from Source Restricted Purchases

We and/or our affiliates may receive rebates, payments and other material benefits from suppliers based on franchisee purchases and we reserve the right to institute and expand rebate programs in the future. During the fiscal year ending December 31, 2023, we did not earn any revenue from approved suppliers based on our franchisees' purchases. Our affiliate DM Supplies receives a rebate of 3% from all franchisee purchases from Sherwin Williams. During the fiscal year ending December 31, 2023, our affiliate DM Supplies earned $3,498.23 in revenue from franchisee purchases that were made

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee may receive material benefits for using Deck Medic's designated or approved suppliers. Deck Medic may negotiate purchase agreements, including price terms, with designated suppliers. They may also establish preferred vendor programs, potentially limiting the number of approved vendors a franchisee can use, or even designating a sole supplier.

Deck Medic has purchase agreements with Sherwin Williams for certain system supplies and with Image 360 for service vehicle wraps, which franchisees must purchase. Deck Medic and its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases, and they reserve the right to institute and expand rebate programs in the future.

For example, DM Supplies, an affiliate of Deck Medic, receives a 3% rebate from all franchisee purchases from Sherwin Williams. During the fiscal year ending December 31, 2023, DM Supplies earned $3,498.23 in revenue from franchisee purchases that were made during the fiscal year ending December 31, 2022. This indicates that while the franchisee may not directly receive a discount at the point of sale, Deck Medic benefits from these purchasing arrangements.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.