What is a Development Schedule in the All States M.E.D. Area Development Agreement?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Area Development Agreement (ADA) includes a Development Schedule. This schedule outlines the required timeline for an area developer to open and operate multiple All States M.E.D. outlets within their defined Development Area. The Development Area is determined using criteria similar to those used for defining the territory of a single All States M.E.D. business.

The key implication of the Development Schedule is that failure to adhere to it can result in significant consequences for the area developer. Specifically, All States M.E.D. retains the right to terminate the developer's rights to open future territories under the ADA if the schedule is not met. However, it is important to note that All States M.E.D. may not terminate franchise agreements that are already in place for existing outlets.

This type of development schedule is a common practice in area development franchise agreements, as it ensures that the developer is committed to expanding the brand's presence within the agreed-upon timeframe. Prospective All States M.E.D. area developers should carefully review the Development Schedule in the ADA to fully understand the required pace of expansion and the potential ramifications of not meeting those requirements. They should also inquire about the specific criteria used to determine the schedule and any flexibility that may be available in case of unforeseen circumstances.