Does the All States M.E.D. franchise agreement permit franchisees to sublicense the use of the System or Marks?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
2.3 Sub-Franchising/Agents
Franchisee shall not sublicense the use of the System or Marks to any person or entity. Except as permitted in Section 18, Franchisee shall not grant any person or entity the right to perform any part of Franchisee's rights or obligations licensed hereunder.
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, franchisees are not permitted to sublicense the use of the System or Marks to any other person or entity. The franchise agreement specifies that franchisees cannot grant any third party the right to perform any part of the franchisee's rights or obligations licensed under the agreement, except as permitted in Section 18.
This restriction means that the All States M.E.D. franchisee must directly manage and operate the business using the System and Marks. They cannot delegate or transfer these rights to another party through a sublicense. This is a fairly standard clause in franchise agreements, as franchisors typically want to maintain control over how their brand and system are used.
For a prospective All States M.E.D. franchisee, this means they must be prepared to be actively involved in the business. They cannot simply purchase the franchise and then hand over the operational responsibilities to someone else. This requirement ensures that the franchisee is committed to upholding the standards and quality associated with the All States M.E.D. brand.