Can Deck Medic transfer its contractual obligations to me to another party?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ve spouses in a manner satisfactory to Franchisor;
- (6) Franchisee, each Owner, and each Spouse must execute the General Release attached to this Agreement as Exhibit 5 releasing Franchisor, Franchisor's affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising
on, or before, the effective date of the Transfer;
- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Deck Medic Businesses and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
- (8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchisee can transfer the agreement under certain conditions. Specifically, if the transfer includes substantially all of the assets of the franchised business, a controlling interest in the franchisee, or is one of a series of transfers that in aggregate transfers substantially all of the assets or a controlling interest, Deck Medic has the option to require the transferee to execute Deck Medic's then-current standard form Franchise Agreement.
This new agreement would supersede the original agreement in all respects and would extend for a term ending on the original agreement's expiration date. While the terms of the new agreement may differ, it must provide for the same Royalty Fee, Advertising Contributions, and all other financial obligations as the original agreement. The transferee is also responsible for upgrading the administrative office to meet Deck Medic's current standards and must complete any required training programs.
Furthermore, the franchisee (and any owners or spouses) remains liable for all obligations to Deck Medic as set forth in the original agreement. The franchisee must also pay Deck Medic a $10,000 Transfer Fee. This indicates that while transfer is possible, it is subject to Deck Medic's approval and involves significant financial and operational obligations for both the franchisee and the transferee.