What happens if a Deck Medic franchisee abandons the franchised business?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
e violate the Franchise Agreement, except as to events of default that are not curable. | | h. | "Cause" defined-non-curable defaults | 16.A.(1), 16.A.(2) | The following are defaults that cannot be cured: three or more instances where you commit a curable default, whether or not you timely cured such default in each instance; you intentionally and knowingly refuse to comply with the terms of the Franchise Agreement, and/or the standards specifications, and/or requirements set forth in the operations manual and/or as communicated to you by us from time to time; you intentionally, knowingly, or negligently operate the Franchised Business in violation of applicable laws, rules, and regulations and, in doing so, create a foreseeable, imminent, and/or immediate threat to the health and safety of others; you abandon the Franchised Business; you or your Owners intentionally made a material |
data, information, and/or records that you record and/or submit to us are intentionally misleading or false; you transfer or attempt to transfer the Franchised Business or the ownership interests in your franchise company without our approval; you disclose or permit the disclosure of information contained in the operations manual and/or of confidential information; you or your Owners engage in intentionally dishonest or unethical conduct that impacts our System; you and/or your Owners breach and, if such breach is capable of a cure, fail to timely cure another agreement with us, including the Owner and Spouse Agreement and Guaranty; you and your Owners and managers fail to complete, to our satisfaction, our initial and on-going training programs; you fail to notify us of the misuse of confidential information and you fail to protect same; you misappropriate or misuse the Licensed Marks; you are deemed insolvent, make an assignment for the benefit of creditors, admit in writing your inability to pay debts;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, abandoning the franchised business is considered a non-curable default, which allows Deck Medic to terminate the Franchise Agreement. This means that if a franchisee simply stops operating the business without properly terminating the agreement, Deck Medic has grounds to immediately terminate the franchise.
Upon termination, the franchisee has several obligations. They must pay all outstanding sums owed to Deck Medic under the Franchise Agreement and any other agreements. The franchisee must also cease operating the Deck Medic business and stop representing themselves as a franchisee. This includes discontinuing the use of Deck Medic's System, Licensed Marks, confidential information, Manuals, Business Management System, Business Management System Data, and System Supplies.
Furthermore, the franchisee is required to return all confidential information and manuals in their original form and document the destruction of any electronic files related to them. The location associated with the franchise must be completely de-identified to remove any association with Deck Medic. At Deck Medic's request, the franchisee must transfer all data, telephone listings, digital media, accounts, web listings, and websites associated with the business. Finally, the franchisee must adhere to post-termination non-competition covenants and restrictions, which prevent them from engaging in a competing business for a specified period and within a certain geographic area.