When is the initial franchise fee considered fully earned by Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 5 INITIAL FEES
When you sign a Franchise Agreement you must pay to us a non-refundable initial franchise fee (the "Initial Franchise Fee"). The Initial Franchise Fee is $30,000 for a geographic area that operates as a single territory with a population of approximately 400,000 to 600,000 people (a "Territory"). The Initial Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises that we offer through this Disclosure Document, except, as described below, we offer a veteran's discount, and multiterritory discount.
Qualified U.S. Military Veterans and First Responders Discount
For qualified individuals who were honorably discharged from any branch of the United States Military or are First Responders (as defined below), the Initial Franchise Fee shall be discounted by 10%. A "First Responder" is any current or former police officer, firefighter or emergency medical technician who served for more than five years in that capacity. This discount requires documented military service. This discount must be requested at the time of your initial franchise application and represents a one-time discount applicable to only the Initial Franchise Fee. This discount is subject to our approval of franchisee entering into our franchise system.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the initial franchise fee is considered fully earned by Deck Medic upon payment. This fee is non-refundable and amounts to $30,000 for a single territory, which typically covers a geographic area with a population of approximately 400,000 to 600,000 people. This policy is uniformly applied to all franchises offered in the document, with exceptions for veteran and multi-territory discounts.
For prospective Deck Medic franchisees, this means that once the initial franchise fee is paid, it is immediately considered earned by Deck Medic and is non-refundable. Therefore, it is crucial to conduct thorough due diligence and be certain about the decision to join the Deck Medic franchise system before making this payment. Understanding this policy is vital for financial planning and risk assessment.
Deck Medic also offers discounts on the initial franchise fee for qualified U.S. military veterans and first responders, reducing the fee by 10%. To qualify, first responders must be current or former police officers, firefighters, or emergency medical technicians with more than five years of service. This discount requires documented military service or proof of first responder status and must be requested at the time of the initial franchise application. Additionally, the initial opening inventory fees, estimated between $2,500 and $5,000, are fully earned by Deck Medic upon payment and are also non-refundable.