When is the outstanding balance due monthly for the Deck Medic franchise agreement when directly financed?
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, if Deck Medic offers direct financing for the franchise fee, the outstanding balance is due monthly on the second Wednesday of each month. This is after an initial down payment of $10,000 is paid upon signing the Franchise Agreement. The direct financing option is for the franchise fee, which is $20,000.
The document specifies that the loan term is 36 months with an annual interest rate of 8%, or the highest rate allowed by law. The monthly payment is $626.73. Deck Medic requires a personal guaranty and a security agreement and UCC-1 filing as security.
Failure to repay the loan could result in the termination of the franchise agreement, allowing Deck Medic to acquire the rights to operate the business. The franchisee also waives various notices, rights, and defenses and may be subject to a confessed judgment in case of default. While Deck Medic states they have no current plans to sell or assign any franchisee's note to a third party, they do reserve the right to do so in the future.