Does the All States M.E.D. franchise agreement specify who bears the cost if the franchisor reviews a new product proposed by the franchisee?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
nt, Franchisor has the right to review from time to time its approval of any items or suppliers. Franchisor may revoke i
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with the franchisor's review of any new product or service they propose. Specifically, the agreement states that the cost to review a new product or service will not exceed $1,000 per product or service.
This means that if an All States M.E.D. franchisee wants to introduce a new product or service that is not currently approved by the franchisor, they must first obtain approval. As part of this process, All States M.E.D. will review the proposed product or service to ensure it meets their standards and specifications. The franchisee will bear the cost of this review, up to a maximum of $1,000 per item.
This policy ensures that All States M.E.D. maintains control over the quality and consistency of the products and services offered under its brand name. It also means that franchisees need to carefully consider the potential costs and benefits before proposing any new products or services, as they will be responsible for the review expenses regardless of whether the product or service is ultimately approved.