Does the All States M.E.D. Franchise Agreement include a General Release as part of Schedule 1?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
I have received a Franchise Disclosure Document dated April 26, 2024 including the following exhibits on the date listed below:
A. List of State Administrators
- B. State Agents for Service of Process
- C. Franchise Agreement
Schedule 1-General Release
Schedule 2-Nondisclosure and Non-Competition Agreement
Schedule 3-Unlimited Guaranty and Assumption of Obligations
Schedule 4-Lease Addendum
Schedule 5-ACH Payment Agreement
Schedule 6-Holders of Legal or Beneficial Interest in Franchisee; Officers; Directors
Schedule 7-State Addenda to the Franchise Agreement
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
Yes, according to the 2024 All States M.E.D. Franchise Disclosure Document, Schedule 1 of the Franchise Agreement is a General Release. This is confirmed in Item 23, which lists the exhibits included in the Franchise Disclosure Document. Specifically, it mentions "C. Franchise Agreement Schedule 1-General Release".
This means that as part of the franchise agreement, there is a document, Schedule 1, that requires the franchisee to release All States M.E.D. from any potential claims. This release is a standard legal document that protects the franchisor from future lawsuits or disputes related to the franchise agreement. Franchisees should carefully review this release with a legal professional to understand the full scope of what they are waiving.
Furthermore, the FDD also states that when transferring ownership of an All States M.E.D. franchise, both the outgoing franchisee and the incoming transferee must execute a general release, in a form similar to Schedule 1, releasing All States M.E.D. from any claims. This requirement ensures that All States M.E.D. is protected from potential liabilities arising from the transfer of ownership. This is a common practice in franchising to ensure a clean break and protect the franchisor from future disputes related to past operations or representations made during the transfer process.