What is the purpose of Article 6 in the Deck Medic Franchise Agreement for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
6.H. OWNERSHIP OF INNOVATIONS, IMPROVEMENTS AND CUSTOMER INFORMATION
Franchisee agrees that with regard to the Franchised Business all customer lists and their contents and information represent Confidential Information and constitute an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term of this Agreement and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods and products conceived or developed by Franchisee and Franchisee's affiliates, Owners, agents, and employees relating to the development and operation of Deck Medic Businesses. Franchisee hereby assigns to Franchisor and Franchisee agrees to procure from Franchisee's Owners, affiliates and employees' assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 6.H. Franchisor shall have no obligation to make any lump sum or on-going payments to Franchisee or Franchisee's Owners, affiliates or employees with respect to any such idea, concept, method, technique
or product. Franchisee agrees that Franchisee will not use nor will Franchisee allow any other person or entity to use any such concept, method or product without obtaining Franchisor's prior written approval.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Article 6.H of the franchise agreement addresses the ownership of innovations, improvements, and customer information related to the franchised Deck Medic business. It states that all customer lists and their contents are considered confidential information and assets of Deck Medic, regardless of who supplied the information.
During the term of the agreement, franchisees must disclose to Deck Medic any ideas, concepts, methods, or products they develop related to the Deck Medic business. The franchisee then assigns these innovations to Deck Medic, and Deck Medic has no obligation to provide any payment for them. The franchisee is prohibited from using or allowing others to use these concepts without prior written approval from Deck Medic.
In essence, this clause ensures that any improvements or innovations developed within a Deck Medic franchise become the property of the franchisor, allowing Deck Medic to potentially implement these across the entire franchise system without compensating the originating franchisee. This type of clause is common in franchise agreements to protect the franchisor's intellectual property and maintain consistency across the brand.