factual

Under what conditions can Deck Medic terminate the franchise agreement without a cure period?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

Michigan FDD Amendment Amendments to the Deck Medic Franchise Disclosure Document

    1. THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
    • A. A prohibition of your right to join an association of Franchisees.
    • B. A requirement that you assent to a release, assignment, novation, waiver or estoppel that deprives you of rights and protections provided in this act. This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
    • C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
    • D. A provision that permits us to refuse to renew a franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to us and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise

Source: Item 23 — RECEIPTS (FDD pages 43–228)

What This Means (2024 FDD)

Based on the 2024 Deck Medic Franchise Disclosure Document, specific details regarding the conditions under which Deck Medic can terminate the franchise agreement without providing an opportunity to cure are not available in the provided excerpts.

However, the Michigan FDD Amendment included in the excerpts indicates that the state of Michigan prohibits certain unfair provisions that are sometimes in franchise documents. Specifically, it states that a provision permitting Deck Medic to terminate a franchise before the expiration of its term, except for good cause, is void and cannot be enforced against the franchisee. Good cause includes the franchisee's failure to comply with any lawful provision of the Franchise Agreement and failure to cure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.

Prospective franchisees should carefully review the franchise agreement and any state-specific amendments to fully understand their rights and obligations regarding termination. It is recommended that prospective Deck Medic franchisees ask the franchisor to provide a comprehensive list of conditions that would allow for termination without a cure period. They should also seek legal counsel to review the franchise agreement and ensure compliance with all applicable laws and regulations, especially concerning termination clauses.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.