What happens when an Open Area becomes an Assigned Area for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) An "Open Area" is a geographic area that (i) is not an Assigned Area; and (ii) is located within a 10 mile radius of your Operating Territory;
- (d) Unless otherwise directed by us at any time, from time to time, and in our sole direction, you may provide Approved Services and Products to a customer (an "Out of Territory Customer") in an Open Area; and
- (e) Once an Open Area becomes an Assigned Area you will no longer be authorized or eligible to provide Approved Services and Products to any customers within the Open Area and you must turn over to us, for the benefit of another Deck Medic Business franchisee, all information and records related to customers in the Open Area.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, an "Open Area" is defined as a geographic location within a 10-mile radius of a franchisee's Operating Territory that is not already an Assigned Area. Franchisees may provide services to customers in an Open Area unless Deck Medic directs otherwise.
However, once an Open Area transitions into an Assigned Area, a Deck Medic franchisee is no longer authorized to provide services or products to customers in that area. Furthermore, the franchisee must transfer all information and records pertaining to customers in the now-Assigned Area to Deck Medic, which will then be used for the benefit of another Deck Medic franchisee.
This policy has several implications for prospective Deck Medic franchisees. Initially, it allows a franchisee to potentially expand their customer base beyond their defined territory into adjacent Open Areas. However, this benefit is not guaranteed, as Deck Medic retains the right to designate these areas to other franchisees. If an Open Area becomes an Assigned Area, the original franchisee loses the right to serve customers in that area and must relinquish all customer data. This highlights the importance of focusing marketing and service efforts primarily within the franchisee's assigned Operating Territory to build a sustainable business.