If a franchisee breaches the Deck Medic agreement, what action can the franchisor take?
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.
- (3) Upon the death of Franchisee or any Owner, the executor, administrator, conservator or other personal representative of that deceased person must transfer his interest to a person Franchisor approves within a reasonable time, not to exceed 12 months from the date of death.
- (4) If Franchisee is an individual, then in the event of the death or permanent disability of Franchisee, this Agreement may be Transferred to any designated person, heir or beneficiary without the payment of the Transfer Fee. Notwithstanding the immediately foregoing sentence, the Transfer of this Agreement to such transferee of Franchisee shall be subject to the applicable terms and conditions of this Article 14, and the Transfer shall not be valid or effective until Franchisor has received the properly executed legal documents, which Franchisor's attorneys deem necessary to properly and legally document such Transfer of this Agreement. Furthermore, said transferee must agree to be unconditionally bound by the terms and conditions of this Agreement, personally guarantee the performance of Franchisee's obligations under this Agreement, and execute the Franchise Owner and Spouse Agreement and Guaranty attached to this Agr
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
Based on the 2024 Deck Medic Franchise Disclosure Document, if a franchisee breaches the agreement, Deck Medic has several options. Deck Medic can appoint a manager to oversee the Deck Medic Business operations, but this does not relieve the franchisee of their obligations or waive Deck Medic's right to terminate the agreement. Deck Medic can charge a reasonable fee for these management services and may discontinue them at any time. If the franchisee is a corporate entity and the managing owner dies or becomes permanently disabled, a new managing owner approved by Deck Medic must be appointed within 30 days and complete the required training within 60 days. If this doesn't happen, Deck Medic can appoint a manager at the franchisee's expense until a suitable managing owner is found.
Upon termination or expiration of the agreement, the franchisee must immediately pay all outstanding sums and fees to Deck Medic, including royalty fees, advertising contributions, and payments for system supplies. The franchisee must also cease operating as a Deck Medic franchise and stop representing themselves as a current or former franchisee. The franchisee is required to notify Deck Medic of all locations where digital files or media containing the operations manual or confidential information are stored, turn over these files, and follow Deck Medic's instructions for their destruction.
Furthermore, the franchisee must modify their former Deck Medic Business and administrative office to differentiate it from its former appearance, removing all distinctive features and signs associated with the Deck Medic system. The franchisee must also cancel all fictitious or assumed names related to the licensed marks. Additionally, the franchisee is obligated to assign the Business Management System, data, customer lists, and transfer all telephone numbers, email addresses, and web-based media listings to Deck Medic. The franchisee must also comply with all restrictive covenants outlined in the agreement and provide written proof of compliance with these post-termination obligations within 30 days of termination.