Does the All States M.E.D. FDD specify any financial thresholds related to the disclosure of former franchisee information?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
G-2 List of Former Franchisees
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
The 2024 All States M.E.D. Franchise Disclosure Document (FDD) includes a list of former franchisees as Exhibit G-2. However, the excerpts provided do not specify any financial thresholds that trigger the disclosure of information about former franchisees.
While the FDD includes lists of both current and former franchisees, and discusses the circumstances under which a franchisee might leave the All States M.E.D. system (such as ceasing operations, non-compete clauses, and obligations upon termination), it does not detail specific financial criteria that would determine whether a former franchisee's information is disclosed.
A prospective All States M.E.D. franchisee should ask the franchisor for clarification on what specific criteria, including financial factors, are used to determine the inclusion of former franchisees in Item 20 and Exhibit G-2. Understanding these criteria can provide valuable insight into the factors that may contribute to franchisee turnover and the overall financial health of the franchise system.