If Deck Medic appoints a manager after the death of an individual franchisee, who is responsible for the costs?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability.
The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment.
If Franchisee's Deck Medic Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Deck Medic Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Deck Medic Business.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if a franchisee is an individual and not a corporate entity, upon their death, their representative must appoint a manager within 30 days. This manager must meet the standards of an Operating Manager and complete the required training within 60 days of appointment.
If a franchisor-approved Operating Manager is not managing the Deck Medic business within 30 days of the franchisee's death, Deck Medic is authorized to appoint a manager to maintain operations. The FDD states that the franchisee is responsible for the costs associated with this manager until an approved Operating Manager can take over.
For a prospective Deck Medic franchisee, this means that in the event of death or permanent disability, the estate will be responsible for covering the costs of a manager appointed by Deck Medic to maintain the business's operations if a qualified replacement is not found within 30 days. This highlights the importance of succession planning and having a qualified individual ready to manage the business to avoid additional costs.