What is the purpose of Article 2.C in the Deck Medic Franchise Agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
2.C. GUARANTY, CONFIDENTIALITY AND RESTRICTIVE COVENANTS
If Franchisee is, at any time, a Corporate Entity, Franchisee agrees that each Owner and their respective Spouse shall execute, sign and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty attached to this Agreement as Exhibit 1 and, in doing so, among other things, will individually, jointly, and severally, guarantee Franchisee's obligations under this Agreement and personally bind themselves to confidentiality and non-competition covenants and restrictions.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Article 2.C, titled "GUARANTY, CONFIDENTIALITY AND RESTRICTIVE COVENANTS," outlines specific requirements if the franchisee is a corporate entity. In such cases, each owner and their respective spouse must execute and deliver a Franchise Owner and Spouse Agreement and Guaranty to Deck Medic.
This agreement ensures that the owners of the corporate franchisee individually, jointly, and severally guarantee the franchisee's obligations under the Franchise Agreement. This means that each owner is personally liable for the debts and responsibilities of the franchise.
Furthermore, by signing the Franchise Owner and Spouse Agreement and Guaranty, the owners and their spouses personally bind themselves to confidentiality and non-competition covenants and restrictions. This protects Deck Medic's confidential information and prevents the owners from competing with Deck Medic, even if the franchise is operated through a corporate entity. This is a common practice in franchising to ensure the franchisor has recourse beyond just the business entity.