What is the Royalty Rate that Deck Medic franchisees must pay?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 2: Royalty Fees – The royalty fee is a continuing monthly fee equal to 6% (the "Royalty Rate") of your monthly Gross Sales (the "Royalty Fee"). If any federal, state or local tax other than an income tax is imposed on the Royalty Fee which we cannot directly and, dollar for dollar, offset against taxes required to be paid under any applicable federal or state laws, you must compensate us in the manner prescribed by us so that the net amount or net effective Royalty Fees received by us is not less than 6% of your Gross Sales.
Note 3: Gross Sales – "Gross Sales" means the total dollar sales from all business and customers of your Deck Medic Business and includes the total gross amount of revenues and sales from whatever source derived, whether in form of cash, credit, agreements to pay or other consideration including the actual retail value of any goods or services traded, borrowed, or received by you in exchange for any form of non-money consideration (whether or not payment is received at the time of the sale), from or derived by you or any other person or Corporate Entity from business conducted or which started in, on, from or through your Deck Medic Business and/or your Operating Territory, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Gross Sales include the total gross amount of revenues and sales from whatever source derived from and/or derived by you including, any person and/or Corporate Entity acting on your behalf, from business conducted within and/or outside your operating territory that is related to your Deck Medic Business and/or a competitive business located and/or operated within your Operating Territory, outside your operating territory, and/or otherwise. Gross Sales do not include (a) sales taxes that you collect and remit to the proper taxing authority, and (b) authorized promotional discounts that you provide to customers.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the royalty fee is a recurring monthly fee equal to 6% of your monthly Gross Sales, referred to as the Royalty Rate. This Royalty Fee is uniformly imposed on all Deck Medic franchises and is not refundable. Payment is subject to Deck Medic's specifications, including the option to have fees automatically drafted from the franchisee's business bank account. Franchisees are required to sign an ACH Authorization Form, permitting Deck Medic to electronically debit their designated bank account for all fees payable to them or their affiliates.
Deck Medic franchisees must deposit the Gross Sales of their Deck Medic Business into designated bank accounts subject to ACH authorization. They are also required to install and use pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems designated by Deck Medic. Franchisees are responsible for paying all service charges and fees charged by their bank for these electronic debits.
The FDD also defines "Gross Sales" as the total dollar sales from all business and customers of your Deck Medic Business, including revenues from any source, whether in cash, credit, or other consideration. Gross Sales do not include sales taxes that you collect and remit to the proper taxing authority, and authorized promotional discounts that you provide to customers. If any federal, state or local tax other than an income tax is imposed on the Royalty Fee which Deck Medic cannot directly offset against taxes required to be paid under any applicable federal or state laws, the franchisee must compensate Deck Medic so that the net effective Royalty Fees received is not less than 6% of Gross Sales.