When transferring a Deck Medic franchise, what must the transferee do regarding the obligations of the franchisee under the agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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;
(10) At the transferee's expense, the transferee, and the transferee's managing owner, managers and/or any other applicable employees of transferee's Deck Medic Business must complete any training programs then in effect for franchisees of Deck Medic Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, several conditions must be met regarding the obligations of the franchisee when transferring a franchise. Specifically, the original franchisee, each owner, and each spouse will remain liable for all obligations to Deck Medic as outlined in the existing franchise agreement.
Additionally, if Deck Medic elects, the transferee may be required to execute the then-current standard form Franchise Agreement for a term ending on the original agreement's expiration date, along with any other agreements Deck Medic requires. These new agreements would supersede the original agreement, but must provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in the original agreement.
The transferee is also responsible for completing any training programs in effect for Deck Medic franchisees at their own expense. The transferee must also improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to Deck Medic's then current standards and specifications within the time period Deck Medic reasonably specifies.