What geographic areas constitute the Restricted Territory for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
od after the earliest to occur of the following: (a) the expiration of the Franchise Agreement; (b) the termination of the Franchise Agreement; (c) the date on which Franchisee assigns the Franchise Agreement to another person (other than you or your Spouse or an Immediate Family Member) provided that you do not and your Spouse does not own or hold, in the assignee, any direct or indirect ownership and/or equity interest whether legal, equitable or otherwise; (d) if you are an Owner of Franchisee, the date on which you cease to be an Owner of Franchisee; or (e) if you are the Spouse of an Owner of Franchisee.
"Restricted Territory" refers to and means the geographic area: (a) comprising Franchisee's Operating Territory; (b) comprising a 25 mile radius surrounding Franchisee's Operating Territory; (c) comprising each of the operating territories, respectively, of other Deck Medic Businesses that are in operation or under development during all or any part of the Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within Franchisee's Operating Territory plus a 25 mile radius surrounding Franchisee's Operating Territory.
"Spouse" refers to and means, as of the Effective Date, the legal spouse of an Owner.
"System" refers to and means our system for the development, establishment and operation of Deck Medic Businesses including, but not limited to: (a) the Approved Services and Products, System
Supplies, and services, procedures and systems that are designated by us, whether presently or in the future, for use in connection with the development, establishment, marketing, promotion and operation of a Deck Medic Business; (b) the Licensed Marks; (c) the Trade Dress; (d) Copyrights; (e) other trade names, service marks, signs, and logos, copyrights and trade dress that is designated by us, whether presently or in the future, for use in connection with the development, establishment, marketing, promotion and operation of a Deck Medic Business; (f) Operations Manual; (g) Business Management System Data; (h) Know-How; (i) Confidential Information; and (j) Digital Media.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the Restricted Territory is defined as the geographic area that includes the franchisee's Operating Territory, a 25-mile radius surrounding the Operating Territory, and the operating territories of other Deck Medic businesses in operation or under development during any part of the Restricted Period. The Restricted Period is 24 months after the franchise agreement's expiration or termination, assignment, or the franchisee ceasing to be an owner.
However, if a court deems this Restricted Territory too broad, it will be redefined as the franchisee's Operating Territory plus a 25-mile radius around it. This revised definition provides a fallback to ensure enforceability.
This restriction impacts where a former Deck Medic franchisee can operate a similar business after leaving the franchise system. The franchisee is limited from operating within the defined Restricted Territory during the Restricted Period. This is a standard clause in franchise agreements designed to protect the franchisor's market and brand.