What is the required down payment for the Deck Medic franchise fee 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 initial franchise fee, a down payment of $10,000 is required. The remaining balance of the $20,000 franchise fee can be financed.
The FDD specifies that the $10,000 down payment is due upon signing the Franchise Agreement. The outstanding balance is then due monthly on the second Wednesday of each month. The term for the financing is 36 months, with an annual interest rate of 8% or the highest rate allowed by law. The monthly payment amount is $626.73.
As security for the financing, Deck Medic requires a personal guaranty, a security agreement, and a UCC-1 filing. Failure to meet the payment obligations could result in the loss of the franchise, along with other remedies available to Deck Medic under the Franchise Agreement, security agreement, and promissory note. Furthermore, the franchisee waives various notices, rights, and defenses and confesses judgment in case of default.