If Deck Medic appoints a manager, is Deck Medic liable for debts incurred by the Deck Medic business?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor's appointment of a manager for Franchisee's Deck Medic Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of
Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Deck Medic Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Deck Medic Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Deck Medic Business. Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time. Notwithstanding the foregoing, if Franchisee is a Corporate Entity and the Managing Owner is the only Owner of Franchisee, then Article 14.D.(1) shall apply as if the Managing Owner were the sole individual Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, if Deck Medic appoints a manager for a franchisee's Deck Medic business, Deck Medic is not liable for any debts, losses, costs, or expenses incurred during the operations of the franchisee's Deck Medic business. This also applies to any creditor of the franchisee for products, materials, supplies, or services purchased by the Deck Medic business.
This means that even if Deck Medic steps in to manage the business, the franchisee remains responsible for all financial obligations. Deck Medic has the right to charge a reasonable fee for these management services and can stop providing them at any time.
This arrangement protects Deck Medic from financial liabilities arising from the operations of a franchised location, even when they are temporarily managing it. It is important for a prospective franchisee to understand that they retain financial responsibility for their business, regardless of who is managing it.