Is Deck Medic obligated to provide financing to franchisees?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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ITEM 10 FINANCING
We may offer direct financing, but neither we nor our affiliates are obligated to provide any funding to you. At this time, we are the only potential lender under the direct financing agreement. We reserve the right to form or designate additional affiliates as potential lenders in the future. We may in the future also provide indirect financing through third parties and receive referral fees from these third party providers. The terms of your financing with third parties will vary. If you request indirect financing, we may receive a referral fee from the third party financing provider. We do not guarantee your note, lease or obligation.
We will provide a promissory note (a "Note") for the amount financed and any financing charges that you, or, if you are a Corporate Entity, each of your members, shareholders, and partners and each of these parties' spouses must sign the Note if we agree to offer you direct financing on your Initial Franchise Fee. You are required to return an original signed copy of the Note to us. We have the right to assign your Note to a third party. Additionally, if you enter into a Note with us for a new Deck Medic Business, we require that you open the Deck Medic Business within six months of your receipt of the funding provided under the Note.
The financing terms 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, neither Deck Medic nor its affiliates are obligated to provide funding to franchisees. Deck Medic may offer direct financing for the initial franchise fee, and may also provide indirect financing through third parties, from which they may receive referral fees. The terms for financing with third parties will vary.
If Deck Medic does offer direct financing, the franchisee will be required to sign a promissory note for the amount financed, including any financing charges. If the franchisee is a corporation, each member, shareholder, and partner, along with their spouses, must also sign the note. Deck Medic has the right to assign the note to a third party. If financing is obtained for a new Deck Medic business, the business must be opened within six months of receiving the funding.
The financing terms Deck Medic currently offers for the initial franchise fee include financing $20,000 with a $10,000 down payment, with the outstanding balance due monthly. The term is 36 months with an 8% APR, and the monthly payment is $626.73. Security includes a personal guaranty, security agreement, and UCC-1. Failure to repay the loan could result in the loss of the franchise and other remedies available to Deck Medic under the Franchise Agreement, security agreement, and note. The franchisee also waives various notices, rights, and defenses and confesses judgment.