Which franchise investment laws are specifically mentioned in relation to All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner.
HAWAII ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Hawaii Franchise Investment Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
THESE FRANCHISES HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS OR A FINDING BY THE DIRECTOR OF COMMERCE AND CONSUMER AFFAIRS THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE DISCLOSURE DOCUMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
THIS DISCLOSURE DOCUMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT.
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, several state and federal laws are relevant to the franchise offering. The document mentions that other states may require registration, filing, or exemption of a franchise under laws regulating the offer and sale of business opportunities or seller-assisted marketing plans.
Specifically, the FDD notes that franchises in Hawaii are governed by the Hawaii Franchise Investment Law. The Hawaii Addendum clarifies that if any terms in the Disclosure Document are inconsistent with the Hawaii Franchise Investment Law, the terms of the law will take precedence. The addendum also states that the franchises have been filed under the Franchise Investment Law of the State of Hawaii, but this filing does not constitute approval, recommendation, or endorsement by the Director of Commerce and Consumer Affairs. The law makes it illegal to offer or sell any franchise in the state without first providing the prospective franchisee or subfranchisor a copy of the disclosure document and all proposed agreements relating to the sale of the franchise at least seven days prior to the execution of any binding franchise or other agreement, or at least seven days prior to the payment of any consideration by the franchisee or subfranchisor, whichever occurs first.
Similarly, the document includes a California Addendum noting that franchises in California are governed by the California Franchise Investment Law. This law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the Franchise Disclosure Document. The addendum also references specific sections of the California Business and Professions Code (Sections 20000 through 20043) that provide rights to the franchisee concerning termination, transfer, or non-renewal of a franchise, clarifying that the law will control if the franchise agreement contains any inconsistent provisions. The Illinois Franchise Disclosure Act is also mentioned, indicating that its terms will control if there are inconsistencies with the Disclosure Document in Illinois.