Does the All States M.E.D. FDD specify any exceptions to the requirement that the Franchisee Disclosure Questionnaire not be signed on the same day as the Receipt for the Franchise Disclosure Document?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT H TO THE DISCLOSURE DOCUMENT FRANCHISEE DISCLOSURE QUESTIONNAIRE
Not to be used as to any franchise sale in or to residents of CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI]
You and we are preparing to enter into a Franchise Agreement. This Acknowledgement is to determine whether any statements or promises were made to you that we did not authorize or are untrue, inaccurate or misleading, t
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
The 2024 All States M.E.D. Franchise Disclosure Document includes a general statement regarding the Franchisee Disclosure Questionnaire, but it does not explicitly address whether there are exceptions to the rule that it should not be signed on the same day as the Receipt for the Franchise Disclosure Document. The FDD includes Exhibit H, titled "FRANCHISEE DISCLOSURE QUESTIONNAIRE", and notes that it is "Not to be used as to any franchise sale in or to residents of CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI".
However, the addenda for Illinois, and New York do address the questionnaire. The Illinois addendum states, "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." The New York addendum contains similar language.
Because the FDD does not provide explicit guidance on exceptions to the timing of signing the Franchisee Disclosure Questionnaire in relation to the Receipt, prospective franchisees should directly ask All States M.E.D. about their specific policies and any potential exceptions. Understanding these requirements is crucial for ensuring compliance with franchise regulations and protecting their rights as franchisees.