Does the All States M.E.D. Franchise Agreement require the franchisee to sign the agreement?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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:
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 franchisee is required to sign the franchise agreement. The document includes recitals indicating that the franchisee has applied for the franchise and that All States M.E.D. has approved the application based on the representations made by the franchisee. The document states that both All States M.E.D. and the franchisee intend to be legally bound by the agreement, indicating that both parties must sign the agreement to that effect.
Furthermore, the All States M.E.D. FDD includes an Unlimited Guaranty and Assumption of Obligations, which is a separate document that the franchisee and potentially other individuals (guarantors) must sign. This guaranty ensures that the franchisee will fulfill all obligations under the Franchise Agreement. The inclusion of signature lines and the explicit mention of guaranteeing the franchisee's performance imply that the franchisee's signature is a necessary component of the agreement.
Additionally, the North Dakota Addendum to the Franchise Agreement stipulates that no statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall waive any claims under state franchise law. This implies that franchisees will be required to sign documents related to the commencement of the franchise relationship.
Finally, the disclosure document receipt itself requires a signature, indicating that the franchisee acknowledges receiving and reviewing the FDD. While this receipt is not the franchise agreement itself, it demonstrates All States M.E.D.'s practice of requiring signatures on important documents related to the franchise offering.