What must Deck Medic transfer fees reflect to be collectable?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (11) Franchisee must pay a fixed sum of an amount equal to $10,000 to Franchisor (the "Transfer Fee");
"Transfer Fee" shall have the meaning defined in Article 14.C.(11) of this Agreement. The Transfer Fee is a fixed sum of an amount equal to $10,000.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee must pay a $10,000 transfer fee to the franchisor to transfer their franchise. The transfer fee is a fixed sum of $10,000.
Several conditions must be met for Deck Medic to approve a transfer. The franchisee and each owner/spouse must be in substantial compliance with the franchise agreement and ancillary agreements. Deck Medic must not elect to exercise its right of first refusal. The proposed transferee must be of good moral character, have sufficient business experience, aptitude, and financial resources to operate a Deck Medic business, and meet Deck Medic's standards for franchisees. The transferee and their owners/spouses cannot own or operate a competitive business.
Deck Medic may require the transferee to execute the then-current standard form franchise agreement for new franchisees, which may supersede the original agreement, provided it maintains the same royalty fee, advertising contributions, and other financial obligations. The transferee must also improve the administrative office to meet current standards within a reasonable timeframe specified by Deck Medic and complete any required training programs. The franchisee, owners, and spouses remain liable for all obligations to Deck Medic set forth in the original agreement, even after the transfer.