Does the All States M.E.D. FDD provide specific details about the Initial Fee Deferral mentioned in the Illinois Addendum?

According to the 2024 All States M.E.D. Franchise Disclosure Document, the Illinois Addendum modifies Item 5 of the Disclosure Document to include an initial fee deferral. This deferral means that All States M.E.D. will postpone collecting all initial fees from franchisees in Illinois until the company has fulfilled its pre-opening obligations to the franchisee and the franchisee has started operating under the Franchise Agreement. Furthermore, the payment of the Development Fee is also deferred until the first franchise business opens.

This deferral is a direct result of a requirement imposed by the Illinois Attorney General's Office due to All States M.E.D.'s financial condition. This is explicitly stated in the addendum, providing transparency to potential franchisees about the reasons behind the deferral.

For a prospective All States M.E.D. franchisee in Illinois, this deferral offers a significant benefit by reducing the upfront financial burden. It allows the franchisee to delay the payment of initial fees and the Development Fee until certain milestones are achieved, specifically until All States M.E.D. has met its pre-opening obligations and the franchise is operational. This can be particularly helpful for franchisees who may have limited capital or who want to reduce their initial investment risk. However, it is important to note that this deferral is specific to Illinois and is a result of the company's financial situation, which prospective franchisees should consider carefully.