If the Franchise Agreement is terminated, are all payments and obligations to Deck Medic accelerated and due immediately?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 17 OBLIGATIONS UPON TERMINATION OR EXPIRATION
17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or
Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement for any reason, a franchisee must immediately pay all outstanding sums and fees to Deck Medic. This includes, but is not limited to, royalty fees, advertising contributions, and any other amounts owed for products or services, including system supplies. This obligation is without limitation to any other article or provision of the agreement.
This means that if the agreement is terminated, Deck Medic franchisees are responsible for settling all outstanding financial obligations immediately. This could place a significant financial burden on the franchisee at a time when they are also ceasing operations. Franchisees should be aware of this requirement and factor it into their financial planning and decision-making.
It is important for prospective Deck Medic franchisees to fully understand the financial implications of termination, including the immediate payment of all outstanding amounts. Franchisees should carefully review the termination provisions in the Franchise Agreement and seek legal and financial advice to assess the potential risks and obligations.