factual

After termination of a Deck Medic franchise, must the franchisee comply with restrictive covenants?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

tories, telephone directory type listings, Web Based Media listings, accounts and log-in information used in connection with Franchisee's former Deck Medic Business and/or otherwise associated with the System and/or the Licensed Marks, cancel Franchisee's interests in same as such cancellation may be directed by Franchisor, and effectuate, perform, honor, and comply with Franchisee's obligations under the Assignment of Telephone Numbers and Digital Media Accounts attached to this Agreement as Exhibit 3;

  • (10) Abide by, and comply with, the restrictive covenants and obligations set forth in this Agreement, including, without limitation, the restrictive covenants and obligations set forth in Article 6 of this Agreement; and
  • (11) Provide Franchisor, within 30 days of the expiration, termination, or Transfer of this Agreement, with written proof demonstrating that Franchisee has complied with the terms of this Article 17 and all other obligations under this Agreement that Franchisee must perform, abide by, and comply with, subsequent to the termination, expiration, or Transfer of this Agreement.

17.C. CONTINUING OBLIGATIONS

All obligations under this Agreement that expressly, or by their nature, survive, or are intended to survive, the expiration, termination, or Transfer of this Agreement shall continue in full force and effect subsequent to, and notwithstanding, this Agreement's termination, expiration, or Transfer until such obligations are satisfied in full or, by the nature and/or terms, such obligation(s) expire.

Franchisee agrees that in the event of a Transfer of this Agreement by Franchisee, whether or not such Transfer is authorized by Franchisor or made in violation of this Agreement, Franchisee shall not be relieved of Franchisee's Obligations under this Agreement and no Owner or Spouse shall be relieved of their respective guarantees, agreements, and obligations related to, or associated with, this Agreement, including, without limitation, the guarantees, agreements, and obligations set forth in the Franchise Owner and Spouse Agreement and Guaranty attached to this Agreement as Exhibit 1. The immediately foregoing shall not be interpreted or otherwise construed as constituting consent to any Transfer of this Agreement without the

express written consent by Franchisor and Franchisee's compliance with this Agreement respecting any such Transfer.

ARTICLE 18 ENFORCEMENT AND CONSTRUCTION

18.A. SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS

  • (1) Except as expressly provided to the contrary in this Agreement, each and every term and provision of this Agreement shall be interpreted or otherwise construed to be independent of each other and severable. Although each term and provision of this Agreement are considered by the parties to be reasonable and intended to be enforceable, if any such term or provision of this Agreement is found by a court of competent jurisdiction, agency, or other government agency to be unenforceable as written or otherwise, then such term and condition shall be modified, rewritten, interpreted, or "blue-lined" to include as much of its nature and scope as will render it enforceable. If such term and condition cannot be so modified, rewritten, interpreted, or "blue-lined" in any respect, then it will not be given effect and severed from this Agreement, and the remainder of this Agreement shall be interpreted, construed and enforced as if such term and condition was not included in this Agreement.
  • (2) If any applicable and binding law or rule requires a greater prior notice of the termination of this Agreement than is required in this Agreement, or the taking of some other action not required by this Agreement, or if under any applicable and binding law or rule, any term and condition of this Agreement, or any specification, standard, or operating procedure Franchisor prescribes is invalid or unenforceable, then the greater prior notice and/or other action required by law or rule shall be substituted for the comparable provisions, and Franchisor has the right, in its sole discretion, to modify the invalid or unenforceable term and condition, specification, standard, or operating procedure to the extent required to be valid and enforceable.

Source: Item 23 — RECEIPTS (FDD pages 43–228)

What This Means (2024 FDD)

According to Deck Medic's 2024 Franchise Disclosure Document, franchisees must comply with certain restrictive covenants both during the term of the agreement and after its expiration or termination. These covenants cover the use of Know-How and Confidential Information, as well as general non-competition obligations. Specifically, franchisees must not use the Know-How or Confidential Information in any business other than the Deck Medic Business, and they must maintain the confidentiality of this information at all times.

After the agreement ends, franchisees must stop using the Know-How and Confidential Information immediately. Additionally, franchisees are obligated to abide by and comply with the restrictive covenants and obligations outlined in Article 6 of the agreement, which addresses unfair competition. These obligations extend beyond the termination of the agreement, as any obligations that expressly or by their nature are intended to survive the termination remain in full effect.

To ensure compliance, Deck Medic requires franchisees to take several actions upon termination, expiration, or transfer of the agreement. This includes canceling any assumed names related to the Licensed Marks, assigning the Business Management System and customer data to Deck Medic, and transferring all telephone numbers and digital media accounts associated with the business. Franchisees must also provide written proof of compliance with these terms within 30 days of termination. Failure to comply with these restrictive covenants can result in irreparable harm to Deck Medic and other franchisees, potentially leading to injunctive relief.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.