What is the term length for direct financing of the Deck Medic franchise fee?
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, the term length for direct financing of the initial franchise fee is 36 months. Deck Medic may offer direct financing for the $20,000 initial franchise fee, but is not obligated to do so.
If Deck Medic offers direct financing, a down payment of $10,000 is due upon signing the Franchise Agreement. The remaining balance is then paid monthly. The monthly payment amount is $626.73. The interest rate is 8% APR or the highest rate allowed by law.
Deck Medic requires a personal guaranty, a security agreement, and a UCC-1 filing as security. Failure to repay the loan could result in the loss of the franchise, as well as other remedies available to Deck Medic under the Franchise Agreement, security agreement, and note. The franchisee must also waive various notices, rights, and defenses, and confess judgment.