If Deck Medic offers direct financing, who must sign the promissory note?

According to Deck Medic's 2024 Franchise Disclosure Document, if Deck Medic offers direct financing for the initial franchise fee, the franchisee must sign a promissory note. If the franchisee is a corporation or other business entity, each member, shareholder, and partner, along with their spouses, must also sign the note. The franchisee is required to return an original signed copy of the note to Deck Medic. Deck Medic retains the right to assign the note to a third party.

This requirement ensures that Deck Medic has recourse to collect the debt from multiple parties if the franchisee defaults. It is a common practice in franchising to require personal guarantees or multiple signatures on financing documents, especially when dealing with corporate entities, to mitigate the risk of non-payment. The inclusion of spouses as signatories further strengthens Deck Medic's position by potentially accessing marital assets in case of default.

Furthermore, the FDD states that if a franchisee enters into a note with Deck Medic for a new Deck Medic business, they are required to open the Deck Medic Business within six months of receiving the funding provided under the Note. This condition ensures that the franchisee promptly utilizes the financing to establish and operate the business, aligning with Deck Medic's interest in seeing the franchise become operational and generate revenue. The promissory note for initial franchise fees is included as Exhibit 6 of the Franchise Agreement.