Is a Deck Medic franchisee required to join any purchasing or distribution cooperatives for source-restricted products or services?

According to Deck Medic's 2024 Franchise Disclosure Document, franchisees are not required to join any purchasing or distribution cooperatives for source-restricted products or services. However, Deck Medic retains the discretion to negotiate purchase agreements, including price terms, with designated suppliers for source-restricted goods and services on behalf of the entire Deck Medic system. They may also establish preferred vendor programs, potentially limiting the number of approved vendors from which franchisees can purchase. In some cases, Deck Medic may designate a single vendor as the sole supplier.

Deck Medic has already established purchase agreements with Sherwin Williams for certain system supplies and with Image 360 for service vehicle wraps, both of which franchisees must utilize. This means a franchisee will not have a choice in who they purchase these items from. While franchisees are not mandated to join cooperatives, these existing agreements and Deck Medic's ability to establish new ones demonstrate that franchisees have limited autonomy in sourcing certain goods and services.

It is important to note that Deck Medic and its affiliates may receive rebates, payments, or other benefits from suppliers based on franchisee purchases. For example, DM Supplies, an affiliate, receives a 3% rebate from all franchisee purchases from Sherwin Williams. In the fiscal year ending December 31, 2023, DM Supplies earned $3,498.23 in revenue from franchisee purchases made during the fiscal year ending December 31, 2022. This revenue structure incentivizes Deck Medic to direct franchisee purchases to specific suppliers, potentially impacting a franchisee's costs and choices.