Following the death or incapacity of an All States M.E.D. franchisee, who must manage the Franchised Business during the transfer period?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
cords relating to the Franchised Business by an intended transferee identified by Franchisee.
18.5 For-Sale Advertising
Franchisee shall NOT, without prior written consent of Franchisor, place in, on or upon the area of the Franchised Business, or in any communication media, any form of advertising relating to the sale of the Franchised Business or the rights granted hereunder.
18.6 Transfer by Death or Incapacity
Upon the death or Incapacity of Franchisee (if Franchisee is an individual) or any holder of a legal or beneficial interest in Franchisee (if Franchisee is a business entity), the appropriate representative of such person (whether administrator, personal representative or trustee) shall, within a reasonable time not exceeding one hundred eighty (180) days following such event, transfer such individual's interest in the Franchised Business or in Franchisee to a third party approved by Franchisor. Such transfers, including transfers by will or inheritance, shall be subject to the conditions for assignments and transfers contained in this Agreement. During such one hundred eighty (180) day period, the Franchised Business must remain at all times under the primary management of a Designated Manager who otherwise meets Franchisor's management qualifications.
Following such a death or Incapacity of such person as described in this Section 18.6, if necessary in Franchisor's discretion, Franchisor shall have the right, but not the obligation, to assume operation of the Franchised Business until the deceased or incapacitated owner's interest is transferred to a third party approved by Franchisor. Franchisor shall be given access to the Franchised Business, even if located within Franchisee's or its Designated Manager's principal residence, and shall not be held liable for trespass or any related tort.
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, in the event of the death or incapacity of a franchisee, the Franchised Business must remain under the primary management of a Designated Manager who meets All States M.E.D.'s management qualifications during the transfer period, which cannot exceed 180 days. This requirement ensures the continued operation of the All States M.E.D. business under qualified supervision during the transition.
If necessary, All States M.E.D. has the right, but not the obligation, to assume operation of the Franchised Business until the deceased or incapacitated owner's interest is transferred to a third party approved by All States M.E.D.. All States M.E.D. will be given access to the business, even if it is located within the franchisee's or the Designated Manager's residence, without being held liable for trespass.
All States M.E.D. may charge a management fee, currently $250 per person per day, as stated in the Operations Manual. Additionally, All States M.E.D. is entitled to reimbursement for any expenses incurred that are not covered by the operating cash flow of the Franchised Business. This provision ensures that All States M.E.D. can maintain the business's standards and operations while a permanent transfer is arranged.