Who is bound by the All States M.E.D. agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, Franchisor grants to qualified persons and business entities the right to own and operate an All States M.E.D. Business using the System and the Marks; and
WHEREAS, Franchisee desires to operate an All States M.E.D. Business, has applied for the Franchise and such application has been approved by Franchisor in reliance upon all of the representations made herein and therein; and
WHEREAS, Franchisee understands and acknowledges the importance of Franchisor's high and uniform standards of quality, operations and service and the necessity of operating the Franchised Business in strict conformity with Franchisor's System.
NOW, THEREFORE, Franchisor and Franchisee, intending to be legally bound, agree as follows:
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, referred to as the Franchisor, and the Franchisee are bound by the franchise agreement. This is established in the recitals of the agreement, which state that both parties intend to be legally bound by the terms outlined. The agreement grants the Franchisee the right to operate an All States M.E.D. Business using the System and Marks, subject to the terms and conditions specified in the agreement.
Additionally, if an Area Development Agreement is in place, both All States M.E.D. Franchising, LLC and the developer are bound by that agreement. The developer is granted the right to develop and operate multiple franchised locations within a defined territory, contingent upon the terms and conditions of the Area Development Agreement.
Furthermore, the document includes an Unlimited Guaranty and Assumption of Obligations, which, when executed, binds the undersigned to personally guarantee the Franchisee's performance and payments under the Franchise Agreement. This guaranty extends to all undertakings, agreements, and covenants within the agreement, making the guarantor personally liable for any breaches by the Franchisee. This includes monetary obligations and specific actions or activities outlined in the agreement.
In summary, the All States M.E.D. agreement binds the Franchisor (All States M.E.D. Franchising, LLC), the Franchisee, any individual signing the Unlimited Guaranty, and, if applicable, the developer under the Area Development Agreement. Each party is responsible for fulfilling their respective obligations as detailed in the relevant agreements.