Does the All States M.E.D. FDD specify the exact dates for signing the franchise agreement and opening dates in the development schedule?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree that you shall sign our then current franchise agreement, have an approved Location, and be open for business in each territory according to the Development Schedule in Appendix B ("Development Schedule"). Our then current franchise agreement may contain different or additional terms than those set forth in any franchise agreement signed concurrently with this Area Development Agreement. Time is of the essence for the development of each Location in accordance with the Development Schedule.
4. DEFAULT AND TERMINATION
If you fail to meet or satisfy the timing in the above Development Schedule, we may give you written notice of the default and if such default is not cured within thirty (30) days after notice of the default,
we may terminate your rights to develop any territories as to which you have breached the above Development Schedule. Also, this Agreement terminates if and when no Franchise Agreement is in place between the parties.
You agree that for our consideration in allowing the Development Schedule set forth above, we may keep as non-refundable all initial franchise fees and Development Fee you may have paid to us at any time.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Area Development Agreement includes a Development Schedule in Appendix B. This schedule outlines the timeframe within which a developer must sign the franchise agreement, secure an approved location, and open for business in each territory. The agreement states that 'Time is of the essence' for adhering to this schedule. However, the FDD does not provide specific dates within the Development Schedule, but rather indicates that the schedule itself is included as Appendix B to the Area Development Agreement.
If a developer fails to meet the deadlines outlined in the Development Schedule, All States M.E.D. may issue a written notice of default. If the developer does not correct the default within thirty (30) days of this notice, All States M.E.D. has the right to terminate the developer's rights to develop any territories for which the schedule was breached. Additionally, the Area Development Agreement will terminate entirely if there is no Franchise Agreement in place between the parties.
Prospective franchisees should carefully review Appendix B of the Area Development Agreement to understand the specific timelines and obligations for development. It is important to note that the franchise agreement signed at a later date may contain different or additional terms than those initially presented. Franchisees should also be aware that All States M.E.D. may retain all initial franchise fees and development fees paid if the development schedule is not met, as these fees are deemed non-refundable.