What are the monthly fees that a Deck Medic franchisee is obligated to pay?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ew platform designated or selected by Franchisor, fails to achieve an aggregate customer satisfaction and/or approval rating of not less than 4.5 stars out of 5 starts and/or a 90% positive satisfaction rating for any particular month.
"Customer Satisfaction Non-Compliance Fee" refers to and means a fee payable by Franchisee in an amount equal to not less than $250 per month. If a Customer Satisfaction Non-Compliance Event(s) occurs or lasts for more than three consecutive months then Franchisor, in Franchisor's Reasonable Business Judgment, may increase the Customer Satisfaction Non-Compliance Fee to a monthly amount determined by Franchisor but not in excess of $750 per month. The Customer Satisfaction Non-Compliance Fee is payable by Franchisee to Franchisor on demand by Franchisor.
"Customer Vouchers" refers to and means any and all vouchers, receipts, cards and other evidence of a pre-paid purchase transaction or goods and/or services, and whether in electronic form, printed form, card or otherwise, concerning a Deck Medic Business.
"Deck Medic Business(es)" refers to and means any business or businesses owned and/or operated by Franchisor, Franchisor's affiliates or an authorized franchisee that utilizes or is required to utilize the System and Licensed Marks.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees may face several potential monthly fees. One such fee is the Customer Satisfaction Non-Compliance Fee, which is levied if a franchisee's monthly customer satisfaction rating falls below 4.5 stars out of 5 or a 90% positive satisfaction rating. This fee starts at $250 per month. However, if the issue persists for more than three consecutive months, Deck Medic has the discretion to increase the fee up to $750 per month.
In addition to the Customer Satisfaction Non-Compliance Fee, franchisees are also required to pay a National Advertising Fund Fee, as detailed in Article 9.A of the franchise agreement. The specific amount and terms of this fee are outlined elsewhere in the agreement. Furthermore, franchisees must cover ongoing weekly, monthly, or per-use fees related to quality assurance programs. These programs involve periodic inspections of the Deck Medic Business and evaluations by secret shoppers, ensuring adherence to Deck Medic's standards.
Prospective Deck Medic franchisees should carefully review Article 9.A to understand the specifics of the National Advertising Fund Fee. They should also inquire about the typical costs associated with the quality assurance programs and the frequency of these fees. Understanding these potential monthly obligations is crucial for accurately forecasting expenses and assessing the financial viability of a Deck Medic franchise.