What is the geographic limit for a Deck Medic franchisee's marketing efforts?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Out of Territory Rules
- (1) Franchisee must conduct the operations of the Franchised Business from within Franchisee's Operating Territory and Franchisee must provide the Approved Services and Products on behalf of customers located within Franchisee's Operating Territory. The marketing of the Franchised Business must be targeted to Franchisee's Operating Territory and, at all times, must conform and comply with, among other things, the restrictions set forth in Article 9.G. of this Agreement;
- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of customers or potential customers outside of Franchisee's Operating Territory or, within the Operating Territory of another Deck Medic Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a customer in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with customers previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Deck Medic Business, all information and records related to the Approved Services and Products provided within the Open Area.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee's marketing efforts must be targeted towards their Operating Territory. The franchisee is required to conduct business operations and provide services to customers within this designated area. All marketing activities must comply with the restrictions outlined in Article 9.G of the franchise agreement.
However, there are exceptions. A Deck Medic franchisee may provide services in an Open Area, which is within a 10-mile radius of their Operating Territory, provided they do not directly solicit customers in another franchisee's territory or violate Article 9. The franchisor retains the right to direct the franchisee to discontinue services in the Open Area at any time. If the Open Area becomes an Assigned Area, the franchisee must cease communication with customers in that area and turn over all related information to Deck Medic or another franchisee.
Deck Medic also has the right to authorize local or regional advertising cooperatives in designated markets. If a franchisee's territory falls within such a cooperative, they are required to participate and contribute financially. These cooperatives focus on administering marketing programs and developing media for local or regional marketing, subject to Deck Medic's review and approval. This cooperative advertising structure is fairly common in franchising, allowing franchisees to pool resources for more effective local campaigns while maintaining brand consistency under franchisor oversight.
These rules ensure that Deck Medic franchisees primarily focus on their assigned territory while allowing some flexibility to serve nearby areas under specific conditions. The franchisor maintains control over marketing efforts through advertising cooperatives and the right to restrict services in open areas, which helps to manage brand consistency and prevent conflicts between franchisees.