Does Deck Medic have the right to require additional forms of security from franchisees?

According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic does have the right to require additional forms of security from franchisees. Specifically, franchisees must sign a security agreement for all of the Franchised Business' assets, including any property acquired after the agreement. Deck Medic will also file a UCC-1 financing statement with the appropriate governmental authority.

In the event that a franchisee fails to repay a loan from Deck Medic, Deck Medic has the right to terminate the franchise agreement and take over the operations of the Deck Medic business. Deck Medic may offer financing to new and existing franchisees who want to expand their business with additional locations; however, any payments made under the promissory notes are non-refundable.

If Deck Medic offers direct financing for the initial franchise fee, the amount financed is $20,000, with a required down payment of $10,000. The term is 36 months, with an 8% APR or the highest rate allowed by law. The monthly payment is $626.73, due on the second Wednesday of each month. Security required includes a personal guaranty, security agreement, and UCC-1. Upon default, the franchisee may lose the franchise and face other remedies available to Deck Medic under the Franchise Agreement, security agreement, and note. The franchisee also waives various notices, rights, and defenses and may confess judgment.