What is the responsibility of the Franchisee, Owners, and Spouse after a transfer of a Deck Medic franchise?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
(1) Permanently cease to be a franchise owner of the Deck Medic Business that was the subject of this Agreement and cease to operate such Deck Medic Business under the System;
(2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Deck Medic franchisee;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, after a franchise is transferred, the franchisee, each owner, and each spouse remain liable for all obligations to Deck Medic as outlined in the Franchise Agreement. This means that even after the business has been sold to a new owner, the original franchisee and related parties are still responsible for any outstanding debts, fees, or other financial obligations that were incurred during their time operating the Deck Medic franchise.
Additionally, upon the transfer of the Franchise Agreement, the franchisee must immediately cease operating the Deck Medic Business under the Deck Medic system. They must also refrain from representing themselves as a current or former Deck Medic franchisee. This ensures that the new owner has the exclusive right to operate the franchise under the Deck Medic brand and system.
These stipulations protect Deck Medic by ensuring continued financial responsibility for past obligations and preventing confusion in the marketplace regarding who is authorized to operate a Deck Medic franchise. For a prospective franchisee, this highlights the importance of fulfilling all financial and operational responsibilities before considering a transfer, as liability does not automatically end with the sale of the business.