What is the 'De-Identification Reimbursement Fee' for All States M.E.D., and when is it due?
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 based on the actual costs incurred by the franchisor. This fee is due as incurred.
This fee is charged if a franchisee fails to properly "de-identify" their franchise location upon termination or expiration of the Franchise Agreement. De-identification typically involves removing All States M.E.D. signage, branding, and other identifying marks from the premises so that it no longer appears to be an All States M.E.D. franchise.
If the franchisee fails to do this, All States M.E.D. has the right to make these changes themselves and then bill the franchisee for the costs they incur. This could include expenses for labor, materials, and any other associated costs. It is in the franchisee's best interest to ensure proper de-identification to avoid these charges.