What are the obligations of a Deck Medic franchisee upon termination or non-renewal of the Franchise Agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
r; and/or you abandon or fail to continuously own and operate the Franchised Business. i. Franchisee's obligations on 6, 17 You must: pay all sums that you owe to us under the termination/non-renewal Franchise Agreement and all other agreements with us; cease owning and operating the Franchised Business; cease representing yourself as a franchisee of ours; permanently cease using and/or accessing the System, the Licensed Marks, our confidential information, the Manuals, the Business Management System, the Business Management System Data, and the System Supplies; return the Manuals and all confidential information to us in the original form provided to you and document the destruction of all electronic files related to same; completely de-identify the location and/or facility associated with the Franchised Business; as requested by us, transfer to us all data, telephone listings, digital media, accounts, web listings and websites associated with the Franchised Business; and abide by the post-termination non-competition covenants and restrictions. j. Assignment of the contract by 14.A. No restriction on our right to assign. franchisor statement or omission in questionnaires submitted to us; the
| k. | "Transfer" by franchisee definition | 14.B. | A transfer means and includes, whether voluntary or involuntary, conditional or unconditional, direct or indirect: (a) an assignment, sale, gift, transfer, pledge or sub franchise; (b) the grant of a mortgage, charge, lien or security interest, including, without limitation, the grant of a collateral assignment; (c) a merger, consolidation, exchange of shares or other ownership interests, issuance of additional ownership interests or securities representing or potentially representing ownership interests, or redemption of ownership interests; and (d) a sale or exchange of voting interests or securities convertible to voting interests, or an agreement granting the right to exercise or control the exercise of the voting rights of any holder of ownership interests or to control the operations or affairs of Franchisee.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, upon termination or non-renewal of the Franchise Agreement, a franchisee has several obligations. These include paying all outstanding sums owed to Deck Medic under the Franchise Agreement and any other agreements. The franchisee must cease operating the Franchised Business and stop representing themselves as a Deck Medic franchisee.
Furthermore, the franchisee is required to permanently cease using the Deck Medic System, Licensed Marks, confidential information, Manuals, Business Management System, Business Management System Data, and System Supplies. All Manuals and confidential information must be returned to Deck Medic in their original form, and the franchisee must document the destruction of all related electronic files. The location associated with the Franchised Business must be completely de-identified to remove any association with the Deck Medic brand.
At Deck Medic's request, the franchisee must transfer all data, telephone listings, digital media, accounts, web listings, and websites associated with the Franchised Business to Deck Medic. Additionally, the franchisee must adhere to the post-termination non-competition covenants and restrictions, which prevent involvement in any competing business for 24 months within the franchisee's Operating Territory, a 25-mile radius of that territory, or any other Deck Medic Business's Operating Territory. The franchisee must also continue to comply with confidentiality, non-disclosure, and non-solicitation covenants.