Is a Deck Medic franchisee required to conduct business with DM Supplies?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Deck Medic Supplies, Inc. ("DM Supplies")
Our affiliate DM Supplies is an Illinois corporation that was established on January 10, 2017. This affiliate maintains an address at 966 Lambrecht Road, Frankfort, Illinois 60423 and provides certain inventory items, including the Starter Kit and semi-transparent oil-based stains and stripping/cleaning products. You will be required to conduct business with this affiliate. This affiliate has not in the past and does not now offer franchises in any lines of business.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–10)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees are required to conduct business with DM Supplies, Inc., an affiliate of Deck Medic. DM Supplies is an Illinois corporation established on January 10, 2017, and is located at 966 Lambrecht Road, Frankfort, Illinois 60423. DM Supplies provides certain inventory items, including the Starter Kit, semi-transparent oil-based stains, and stripping/cleaning products.
This requirement means that franchisees must purchase these specific supplies directly from DM Supplies rather than sourcing them from alternative vendors. This arrangement ensures consistency in product quality and standardization across all Deck Medic franchises, which is a common practice in franchising. However, it also limits the franchisee's ability to negotiate prices or potentially find cheaper alternatives.
For a prospective franchisee, this requirement has several implications. It simplifies the supply chain for essential products but also reduces autonomy in purchasing decisions. Franchisees should carefully evaluate the pricing and quality of the products offered by DM Supplies to ensure they align with their business needs and financial projections. It would be prudent to inquire about the terms of supply, including payment schedules, shipping costs, and return policies, to fully understand the financial impact of this requirement.