What is the initial franchise fee that Deck Medic will directly finance?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
we currently offer is described in the tables below:
| Finance Type | Direct – Initial | Indirect |
|---|---|---|
| Franchise Fee | ||
| Amount | $20,000 | As agreed |
| Financed | ||
| Down | $10,000 | As agreed |
| Payment | ||
| Term | 36 months | As agreed |
| Interest | 8% APR or the highest rate allowed by law | As agreed |
| Finance | None if paid in full within term | As agreed |
| Charges | ||
| Payment | $626.73 | As agreed |
| Amount | ||
| Payment Terms | $10,000 down payment due upon signing of Franchise Agreement with the outstanding balance due monthly on the second Wednesday of each month | As agreed |
| Security | Personal Guaranty; Security Agreement and UCC-1 | As agreed |
| Required | ||
| Liability Upon Default | Loss of franchise and other remedies available to use under the Franchise Agreement, security agreement and note | As agreed |
| Loss of Legal Rights on Default | Waive various notices, rights and defenses; confess judgm |
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic may offer direct financing for the initial franchise fee. The amount financed is $20,000, with a required down payment of $10,000. The term length for repayment is 36 months, with an annual interest rate of 8% APR, or the highest rate allowed by law. The monthly payment amount is $626.73.
To qualify for this financing, a prospective Deck Medic franchisee must sign a promissory note and a security agreement for all of the franchised business's assets, including after-acquired property. Deck Medic will also file a UCC-1 financing statement with the appropriate governmental authority. The down payment of $10,000 is due upon signing the Franchise Agreement, with the remaining balance due monthly on the second Wednesday of each month.
Defaulting on the loan can result in the loss of the Deck Medic franchise, as well as other remedies available to Deck Medic under the Franchise Agreement, security agreement, and note. The franchisee also waives various notices, rights, and defenses, and consents to confessing judgment in case of default. Deck Medic may offer financing to new and existing franchisees who wish to expand with additional outlets. Any payments under the notes are non-refundable. You must enter into the Note at the time you execute the Franchise Agreement in order to qualify for our financing program.