Who benefits from the All States M.E.D. agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
This Area Development Agreement (this "Agreement") is made this day of , 20 by and between All States M.E.D. Franchising, LLC ("we" or "us") and ("developer" or "you").
RECITALS
You desire to develop and operate several franchised locations and we, in reliance on your representations, have approved your franchise application to do so in accordance with this Agreement.
In consideration of the foregoing and the mutual covenants and consideration below, you and we agree as follows:
1. GRANT OF DEVELOPMENT RIGHTS
We grant to you, under the terms and conditions of this Agreement, the right to develop and operate NUMBER (#) of franchised locations (each a "Location", and collectively, the "Locations") within the territory described on Appendix A ("Development Territory").
2. DEVELOPMENT FEE
You must pay a Development Fee as described below:
As consideration for the rights granted in this Agreement, you must pay us the Initial Franchise Fee stated in the Franchise Agreement at the time you sign this Agreement for the first territory to be developed under this Agreement and one-half of the Initial Franchise Fee for each subsequent Location to be developed under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, both All States M.E.D. Franchising, LLC, and the developer (franchisee) benefit from the Area Development Agreement. The agreement outlines the rights and responsibilities of both parties, with the developer gaining the right to develop and operate multiple franchised locations within a specific territory. All States M.E.D. benefits from the developer's commitment to expanding the brand's presence and adherence to the company's system.
The agreement states that the developer desires to develop and operate several franchised locations, and All States M.E.D. has approved their application based on the developer's representations. This mutual agreement suggests that both parties see value in the arrangement. The developer pays a Development Fee to All States M.E.D. for the rights granted in the agreement, which includes the initial franchise fee for the first territory and half of the initial franchise fee for each subsequent location.
All States M.E.D. grants the developer the right to develop and operate a specific number of franchised locations within a defined territory, as detailed in Appendix A of the agreement. This grant is subject to the terms and conditions outlined in the agreement. The franchisee benefits from the use of All States M.E.D.'s established system, service marks, and operational procedures, while All States M.E.D. benefits from the franchisee's investment and operation of the business according to their standards.