When transferring a Deck Medic franchise, what must happen with all accrued monetary obligations of the franchisee?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or
Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
- (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.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, both the franchisee and their owners/spouses remain liable for all obligations to Deck Medic as outlined in the franchise agreement. This means that any outstanding payments, fees, or other financial responsibilities the franchisee has to Deck Medic must still be fulfilled even after the franchise is transferred.
Furthermore, upon the transfer of the franchise agreement, the franchisee is obligated to immediately pay Deck Medic all outstanding sums and fees. This includes, but is not limited to, royalty fees, advertising contributions, and any other amounts owed for products or services received from Deck Medic, its affiliates, or suppliers.
In addition to settling all outstanding financial obligations, the franchisee must also provide Deck Medic with written proof within 30 days of the transfer, demonstrating that they have complied with all the terms of Article 17 and all other obligations under the agreement that must be performed after the transfer. This ensures a clean break and confirms that all responsibilities have been met before the transfer is finalized.