When is the de-identification reimbursement fee due to All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $15,000 | Before transfer completed | No charge if Franchise Agreement transferred to an entity you control. The amount of this fee is subject to applicable state law. FA 18.2(h). |
| De-Identification Reimbursement Fee | Actual costs incurred | As incurred | If you fail to de-identify upon termination or expiration of the Franchise Agreement, we may make such changes and you agree to reimburse any cost we incur to do so. FA 17.3. |
| Management Fee | $250 per person per day (plus other costs and expenses) | As incurred | Due when we (or a third party) manage your outlet after your managing owner’s death or disability, or after your default or abandonment. FA 16.5, 18.6. |
| Indemnification | Actual costs | As incurred | You must reimburse us if we are held liable for claims from your outlet’s operation. FA 21.3. |
| Cost of Enforcement | All costs, including reasonable attorneys’ fees | Upon demand | You must reimburse us for all costs in enforcing obligations if we prevail. FA 22.4, 23.11; Sch 3. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the de-identification reimbursement fee is due as incurred. This fee covers the actual costs All States M.E.D. incurs if a franchisee fails to de-identify their business upon termination or expiration of the Franchise Agreement.
In practical terms, this means that if a franchisee does not remove All States M.E.D. branding, signage, and other identifying marks from their former location after the franchise agreement ends, All States M.E.D. can take action to do so themselves. The franchisee is then responsible for reimbursing All States M.E.D. for the actual costs they incur in this process.
This is a fairly standard clause in franchise agreements, designed to protect the brand's image and prevent confusion in the marketplace after a franchise ceases operation. Franchisees should ensure they understand the de-identification requirements outlined in their Franchise Agreement to avoid incurring these costs.