What ongoing fees is a Deck Medic franchisee obligated to pay monthly?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
As designated by Franchisor in this Agreement, the Manual or otherwise, Franchisee shall pay the following additional fees to either Franchisor, Franchisor's affiliate(s), or Franchisee's designee(s):
- (1) National Advertising Fund Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, the National Advertising Fund Fee as set forth in Article 9.A. of this Agreement.
- (2) Customer Satisfaction Non-Compliance Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, a Customer Satisfaction Non-Compliance Fee upon demand of Franchisor following the occurrence of a Customer Satisfaction Non-Compliance Event.
- (3) Non-Compliance Fees Franchisee shall pay to Franchisor all Non-Compliance Fees in accordance with the terms of this Agreement including, but not limited to, Payment Non-Compliance Fees, Operations Non-Compliance Fees, and Reporting Non-Compliance Fees.
- (4) Supplemental Training Fees Franchisee shall pay to Franchisor all training fees in accordance with the terms of this Agreement including, but not limited to, Additional Initial Training Fees and Supplemental Training Fees.
- (5) Quality Assurance Audit Fees Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees on-going weekly, monthly, and/or per use fees related to quality assurance programs designated by Franchisor related to periodic inspections of Franchisee's Deck Medic Business and secret shopper evaluations.
- (6) Annual Conference Attendance Fees Franchisee shall be responsible for all expenses of its personnel attending the Annual System Conference including travel, meals and lodging. Franchisee may be required to pay to Franchisor an Annual Conference Attendance Fee. Franchisee agrees that if Franchisee fails to attend the Annual System Conference that Franchisor may, nevertheless, charge and Franchisee shall pay the Annual Conference Attendance Fee – even if Franchisor waives such fee for franchisees who attend the Annual System Conference.
- (7) All Other Fees and Obligations Set Forth in this Agreement Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees such other fees, charges and expenses as set forth in this Agreement and in accordance with the terms of this Agreement or, otherwise, in accordance with the Manuals and/or Franchisor's standards and specifications.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees may be obligated to pay several ongoing fees monthly. These include the National Advertising Fund Fee, as determined in Article 9.A of the agreement. Additionally, if a franchisee's monthly customer satisfaction ratings fall below 4.5 stars out of 5 or a 90% positive satisfaction rating, they may incur a Customer Satisfaction Non-Compliance Fee. This fee starts at $250 per month but can increase to $750 per month if the issue persists for more than three consecutive months.
Furthermore, Deck Medic franchisees may face Quality Assurance Audit Fees for ongoing weekly, monthly, or per-use inspections and secret shopper evaluations. They may also be required to pay an Annual Conference Attendance Fee, even if they do not attend the conference, if the franchisor does not waive the fee.
Prospective franchisees should carefully review Article 9.A to understand how the National Advertising Fund Fee is calculated. They should also aim to maintain high customer satisfaction ratings to avoid the non-compliance fees. Understanding the potential costs associated with quality assurance audits and the annual conference is also crucial for budgeting and financial planning. Finally, franchisees should be aware of the potential for additional fees as outlined in the franchise agreement and manuals.