When transferring a Deck Medic franchise, what agreement must each owner of the transferee and their spouses personally execute?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that the foregoing covenants and obligations shall also apply to: (a) Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1; and (b) Franchisee's directors, officers, employees and agents where disclosure of the Confidential Information was necessary for the operations of the Franchised Business and where such director, officer, employee and/or agent previously executed and timely delivered to Franchisor the Confidentiality Agreement in the form attached as Exhibit 2.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, during a franchise transfer, each owner and their spouses of the proposed transferee must execute and deliver the Franchise Owner and Spouse Agreement and Guaranty. This agreement is in the form attached to the Franchise Agreement as Exhibit 1.
This requirement ensures that the new owners and their spouses are personally bound by the obligations and terms of the franchise agreement. By signing the Franchise Owner and Spouse Agreement and Guaranty, they guarantee the franchisee's performance and financial obligations to Deck Medic.
This is a common practice in franchising, as it provides the franchisor with an additional layer of security and ensures that individuals with a vested interest in the franchise's success are committed to upholding the brand's standards and contractual obligations. Prospective franchisees should carefully review Exhibit 1 to understand the full scope of their obligations and liabilities under this agreement.