What is the purpose of Article 3 in the Deck Medic Franchise Agreement for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Out of Territory Rules
- (1) Franchisee must conduct the operations of the Franchised Business from within Franchisee's Operating Territory and Franchisee must provide the Approved Services and Products on behalf of customers located within Franchisee's Operating Territory. The marketing of the Franchised Business must be targeted to Franchisee's Operating Territory and, at all times, must conform and comply with, among other things, the restrictions set forth in Article 9.G. of this Agreement;
- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of customers or potential customers outside of Franchisee's Operating Territory or, within the Operating Territory of another Deck Medic Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a customer in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with customers previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Deck Medic Business, all information and records related to the Approved Services and Products provided within the Open Area.
Nothing contained in this Article 3.I. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Territory and, in the event of any inconsistency or conflict between the terms of this Article 3.I. and Article 2, Article 2 shall take precedence and govern.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Article 3.I pertains to out-of-territory rules for franchisees. It stipulates that franchisees must operate their Deck Medic business within their assigned Operating Territory and provide services to customers within that territory. Marketing efforts must also be targeted towards this specific area and comply with the restrictions outlined in Article 9.G of the agreement.
However, under certain conditions, a Deck Medic franchisee may provide services in an Open Area, which is defined as a territory within a 10-mile radius of their Operating Territory that is not already assigned to another franchisee. These conditions include not engaging in direct solicitation of customers outside their territory or within another franchisee's territory, and adhering to the restrictions in Article 9. Deck Medic retains the right to direct a franchisee to discontinue services in an Open Area at any time, for any reason.
If an Open Area becomes an Assigned Area, the Deck Medic franchisee must stop communicating with customers they previously served in that area and transfer all related information and records to Deck Medic or another franchisee. The document clarifies that Article 3.I does not expand the non-exclusive franchise rights granted in Article 2, and in case of any conflict between the two articles, Article 2 takes precedence.