When is the Operations Non-Compliance fee due for a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| Customer Service and Refunds (Note 8) | Varies under the circumstances | On demand | Applies if, in our discretion, we elect to resolve a complaint or refund request by a customer. |
| Annual Conference Attendance Fee (Note 9) | Our then current conference fee, not greater than $1,000 | When invoiced | Applies to conference fee for an annual System conference. |
| Additional Employee Initial Training | Our then current training fee, currently $600 per person per day | When invoiced and prior to training | Our initial pre-opening training is provided at no additional cost for you or your Managing Owner and one designated manager at no additional charge. This fee applies to additional individuals that we authorize to attend training. You are responsible for all fees, wages, and expenses associated with attendance. |
| Supplemental Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $600 per day | On demand | If you request or we require additional training, you must pay our then current trainer fee plus, if applicable, our expenses related to travel and accommodations. |
| Supplier Review | $500 plus actual fees, costs, and expenses | On demand | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval, regardless of whether we subsequently approve the product or supplier. |
| Non-Compliance: Customer Reviews (Note 10) | $250 to $750 per month | On demand | If your aggregate customer review ratings fall below 4.5 stars out of 5 or below a 90% approval rating you must pay to us a non-compliance fee of between $250 to $750 per month for each month of non-compliance. |
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit royalty and other reports required under the Franchise Agreement. |
| Operations Non-Compliance | $450 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the Operations Non-Compliance fee is due 14 days from the date of the invoice. This fee ranges from $450 to $1,000 per occurrence.
The Operations Non-Compliance fee is charged if a Deck Medic franchisee fails to comply with the operational standards outlined in the Franchise Agreement. In addition to the fee itself, the franchisee is also responsible for covering any inspection and re-inspection costs that Deck Medic incurs to assess and rectify the non-compliance.
This fee structure incentivizes franchisees to adhere to Deck Medic's operational standards. Failing to do so can result in unexpected costs, impacting profitability. Prospective franchisees should carefully review the operational standards detailed in the Franchise Agreement to fully understand the requirements and avoid incurring these fees.