Under what conditions can Deck Medic appoint a manager to oversee the operations of a franchised business?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement; and
- (19) Franchisor's consent to a Transfer of any interest that is subject to the restrictions of this Agreement shall not constitute a waiver of any claims it may have against Franchisee or deemed a waiver of Franchisor's right to demand strict and exact compliance with this Agreement by the transferee.
14.D. DEATH OR DISABILITY OF FRANCHISEE OR AN OWNER
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Deck Medic Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Deck Medic Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Deck Medic Business. Franchisor's appointment of a manager for Franchisee's Deck Medic Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Deck Medic Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Deck Medic Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Deck Medic Business. Franchisor has the right to charge a reasonable fee (the "Management Service Fees") for such management services and may cease to provide management services at any time.
- (2) If Franchisee is a Corporate Entity, upon the death or permanent disability of Franchisee's Managing Owner, the remaining Owners within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability, must appoint a new Managing Owner that is approved by Franchisor. The appointed Managing Owner must attend and successfully complete the Training Program within 60 days of the appointment.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic can appoint a manager to oversee a franchised business under specific circumstances related to the death or disability of the franchisee or a managing owner. If the franchisee is an individual and not a corporate entity, and upon their death or permanent disability, their representative must appoint a manager meeting the equivalent of an Operating Manager within 30 days. This appointed manager must then qualify as an Operating Manager and complete the Deck Medic Training Program within 60 days of appointment.
If the franchisee fails to have a Franchisor-approved Operating Manager within that initial 30-day period following the death or disability, Deck Medic is authorized, but not required, to immediately appoint a manager. This manager will maintain the operations of the Deck Medic business on behalf of the franchisee, and at the franchisee's sole cost, until an approved Operating Manager can take over. This ensures business continuity during unforeseen circumstances.
Similarly, if the franchisee is a corporate entity, and the Managing Owner dies or becomes permanently disabled, the remaining owners have 30 days to appoint a new Managing Owner approved by Deck Medic. This new Managing Owner must also attend and successfully complete the Training Program within 60 days of their appointment. If the Deck Medic business is not managed by a Franchisor-approved Managing Owner within 30 days after the death or disability, Deck Medic is authorized to appoint a manager to maintain operations at the franchisee's expense until a qualified Managing Owner is in place.
It's important to note that Deck Medic's appointment of a manager does not relieve the franchisee of their obligations under the Franchise Agreement. The franchisee remains responsible for all debts, losses, costs, and expenses incurred during the manager's tenure. Deck Medic also has the right to charge a reasonable fee for these management services and can cease providing them at any time. This arrangement aims to protect the Deck Medic brand and ensure consistent operation standards are maintained, even when the original franchisee or managing owner is unable to fulfill their duties.