How is subarticle 16.A.(4)(f) of the Deck Medic Franchise Agreement's Article 16 supplemented regarding defaults and automatic termination?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
(m) Upon termination by Franchisor pursuant to Article 16.A.(2), Article 16.A.(3), or Article 16.A.(4) of this Agreement.
(2) Defaults and Automatic Termination upon Written Notice without Cure Period Franchisee shall be in default of this Agreement, and, this Agreement may be terminated by Franchisor, at Franchisor's sole discretion, upon written notice from Franchisor to Franchisee and without providing Franchisee any opportunity to cure, upon the occurrence of any one or more of the following actions, inactions, omissions, events, and/or circumstances, with such termination effective on the date of Franchisor's notice:
(a) Franchisee, on three or more instances and/or occasions, engages, commits, and/or suffers an action, inaction, omission, event, and/or circumstance that constitutes or qualifies as a default under Articles 16.A.(3) and/or 16.A.(4) of this Agreement, irrespective of whether or not such action, inaction, omission, event, and/or circumstance is the subject of a notice of default from Franchisor to Franchisee pursuant to Articles 16.A.(3) and/or 16.A.(4) of this Agreement and irrespective of whether or not such default was timely cured and irrespective of whether or not Franchisee paid any penalties or additional fees to Franchisor;
- (b) Franchisee, intentionally and knowingly, refuses to comply with and/or breaches any term, condition, provision, and/or requirement of this Agreement with the intent of causing harm to Franchisor, the System, other System franchisee and/or customers of the Franchised Business;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
Based on the 2024 Deck Medic Franchise Disclosure Document, Article 16.A.(4)(f) is not explicitly supplemented within the provided excerpts. However, Article 16.A.(2) discusses defaults and automatic termination upon written notice without a cure period under certain conditions.
Specifically, Deck Medic can terminate the agreement with a franchisee via written notice without any opportunity to cure the default if the franchisee engages in actions that qualify as a default under Articles 16.A.(3) and/or 16.A.(4) on three or more instances, regardless of whether the franchisor issued a notice of default or whether the franchisee cured the default or paid penalties. Deck Medic can also terminate the agreement if the franchisee intentionally refuses to comply with any term of the agreement with the intent of causing harm to the franchisor, the system, other franchisees, or customers.
Prospective Deck Medic franchisees should note that these provisions allow Deck Medic to terminate the franchise agreement quickly under specific circumstances, without providing an opportunity to correct the issue. It is important to fully understand the implications of these terms and conditions before entering into a franchise agreement. Franchisees should seek clarification from Deck Medic regarding what specific actions could trigger such termination and under what conditions these provisions would be enforced.