What is the monthly payment amount for direct financing of the Deck Medic franchise fee?
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, direct financing for the initial franchise fee is available under specific terms. If Deck Medic offers direct financing for the $20,000 franchise fee, a down payment of $10,000 is required. The remaining balance is financed over a term of 36 months with an 8% APR, or the highest rate allowed by law.
The monthly payment for this direct financing option is $626.73, due on the second Wednesday of each month. This financing plan necessitates a personal guaranty, a security agreement, and a UCC-1 filing as security. Failure to repay the loan could result in the termination of the franchise agreement and the loss of rights to operate the Deck Medic business.
It is important to note that Deck Medic is not obligated to provide direct financing, and the availability of this option is subject to their approval. The FDD also mentions the possibility of indirect financing through third parties, but the terms for those arrangements would vary and are agreed upon separately. Prospective franchisees should carefully consider the implications of waiving various legal rights and defenses in the event of default, as outlined in the promissory note.