What is the effective date of the All States M.E.D. Franchise Agreement in Illinois?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
"Effective Date" means the date on which Franchisor and Franchisee fully execute this Agreement, thereby commencing its effectiveness and term;
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, the effective date of the Franchise Agreement is defined as the date when both All States M.E.D. and the franchisee have fully executed the agreement. At that point, the agreement becomes effective, and the term of the franchise begins. This definition applies generally to the franchise agreement, including in Illinois.
However, the Illinois Addendum to the Franchise Agreement modifies certain aspects of the standard agreement to comply with Illinois law. Specifically, it states that Illinois law governs the Franchise Agreement. It also addresses issues such as jurisdiction, venue, franchisee rights upon termination or non-renewal, and waivers of compliance with Illinois law.
Furthermore, the Illinois Addendum includes a provision for initial fee deferral. This means that All States M.E.D. will defer collecting initial fees until they have fulfilled their pre-opening obligations to the franchisee and the franchisee has commenced business operations. This deferral was imposed by the Illinois Attorney General's Office due to All States M.E.D.'s financial condition. Therefore, while the effective date is the date of full execution, the financial obligations may be deferred under the conditions outlined in the Illinois Addendum.