Is the All States M.E.D. franchise agreement a contractual relationship?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
and the Operations Manual; and
WHEREAS, Franchisor grants to qualified persons and business entities the right to own and operate an All States M.E.D. Business using the System and the Marks; and
WHEREAS, Franchisee desires to operate an All States M.E.D. Business, has applied for the Franchise and such application has been approved by Franchisor in reliance upon all of the representations made herein and therein; and
WHEREAS, Franchisee understands and acknowledges the importance of Franchisor's high and uniform standards of quality, operations and service and the necessity of operating the Franchised Business in strict conformity with Franchisor's System.
NOW, THEREFORE, Franchisor and Franchisee, intending to be legally bound, agree as follows:
1. DEFINITIONS
Whenever used in this Agreement, the following words and terms have the following meanings:
- "Affiliate" means any business entity that controls, is controlled by, or is under common control with Franchisor;
- "Agreement" means this Franchise Agreement and all instruments supplemental hereto or in amendment or confirmation hereof;
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchise relationship is established through a legally binding agreement. The FDD references the franchise agreement and area development agreement as contracts between All States M.E.D. Franchising, LLC and the franchisee or developer. The document states that All States M.E.D. "enters into franchise agreements with its franchisees," indicating a formal contractual arrangement.
The "RECITALS" sections of both the Franchise Agreement and the Area Development Agreement explicitly state the intent to create a legally binding agreement. For instance, the Area Development Agreement states, "In consideration of the foregoing and the mutual covenants and consideration below, you and we agree as follows." Similarly, the Franchise Agreement states, "NOW, THEREFORE, Franchisor and Franchisee, intending to be legally bound, agree as follows." These statements confirm that both parties intend to enter into a contractual relationship with defined obligations and rights.
Furthermore, the FDD emphasizes the importance of the franchisee's adherence to All States M.E.D.'s system and standards, reinforcing the contractual nature of the franchise relationship. The Illinois Addendum to the Franchise Agreement also acknowledges the legal enforceability of the agreement, stating, "Illinois law governs the Franchise Agreement." This clause specifies the jurisdiction under which the contract will be interpreted and enforced, further solidifying its status as a legally binding document.