factual

Is a Deck Medic franchisee required to purchase service vehicle wraps from Image 360?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

We have also entered into a purchase agreement with Image 360 for the service vehicle wraps that you must purchase for your service vehicle.

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, franchisees are required to purchase service vehicle wraps from Image 360. Deck Medic has a purchase agreement with Image 360 for these wraps.

This requirement ensures brand consistency across all Deck Medic franchise locations. By mandating the use of approved branding and vehicle wraps, Deck Medic aims to maintain a uniform and recognizable image for its service vehicles. This is a common practice in franchising, where brand standardization is crucial for building customer recognition and trust.

For a prospective franchisee, this means they must factor in the cost of these vehicle wraps when budgeting for their initial investment. While the FDD does not specify the exact cost of the wraps, it's important for franchisees to understand that they cannot source these wraps from another vendor. This restriction is in place to maintain Deck Medic's brand standards and quality control. Franchisees should inquire about the cost of the vehicle wraps from Image 360 during their due diligence process.

It is also important to note that Deck Medic may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. While the FDD states that Deck Medic did not earn any revenue from approved suppliers based on franchisee purchases during the fiscal year ending December 31, 2023, their affiliate DM Supplies receives a rebate of 3% from all franchisee purchases from Sherwin Williams. This highlights the potential for Deck Medic to benefit financially from required purchases, which is a common practice in franchising.

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.