Can the All States M.E.D. Franchise Agreement be modified without a written agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. Non-Competition Covenants During the Term of the Franchise | FA: Section 7.3 | You, your owners, and your officers, directors, executives, managers, professional staff, and employees are prohibited from: attempting to divert any business or customer of the Franchised Business to a competitive business or causing injury or prejudice to the Marks or the System; owning or working for a competitive business. |
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| r. Non-Competition Covenants After the Franchise is Terminated or Expires | FA: Section 17.2 | For 2 years after the termination or expiration of the Franchise Agreement, you may not offer competitive business services within 90 miles of any other franchised outlet, or of any other Franchisor owned business; or solicit or influence any of our customers or business associates to compete with us or terminate their relationship with us. Subject to applicable state law. |
| s. Modification of the Agreement | FA: Sections 9.2, 22.7, and 22.8 | The Franchise Agreement can be modified only by written agreement between you and us. We may modify the Operations Manual without your consent if the modification does not materially alter your fundamental rights. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–39)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Franchise Agreement can only be modified through a written agreement between the franchisee and All States M.E.D. This requirement ensures that any changes to the original agreement are documented and agreed upon by both parties, providing clarity and legal protection.
This stipulation is typical in franchising, as it prevents misunderstandings or disputes that could arise from verbal agreements or undocumented changes. It also protects the franchisee by ensuring that All States M.E.D. cannot unilaterally alter the terms of the agreement to the franchisee's detriment without a formal, written amendment.
However, All States M.E.D. can modify the Operations Manual without the franchisee's consent, provided that the changes do not fundamentally alter the franchisee's rights. This allows All States M.E.D. to adapt the operational guidelines as needed, but it also means that franchisees must stay informed of any changes to the manual, even if they have not explicitly agreed to them. Franchisees should pay close attention to what constitutes a 'material' alteration of their fundamental rights, as this is subject to interpretation and could be a point of contention.