For All States M.E.D., what is the franchisee agreeing to regarding information contained in Item 19 of the Franchise Disclosure Document?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee represents that it has been urged to consult with its own advisors with respect to the legal, financial and other aspects of this Agreement, the business franchised hereby and the prospects for that business. Franchisee represents that it has either consulted with such advisors or has deliberately declined to do so.
24.3 True and Accurate Information
Franchisee represents that all information in any and all applications, financial statements, and submissions to Franchisor is true, complete, and accurate in all respects, and Franchisee acknowledges that Franchisor is relying upon the truthfulness, completeness, and accuracy of such information.
24.4 Risk
Franchisee represents that it has conducted an independent investigation of the business contemplated by this Agreement and acknowledges that, like any other business, an investment in an All
States M.E.D. Business involves business risks and that the success of the venture is dependent, among other factors, upon the business abilities and efforts of Franchisee. Franchisor makes no representations or warranties, express or implied, in this Agreement or otherwise, as to the potential success of the business venture contemplated hereby.
24.5 No Guarantee of Success
Franchisee represents and acknowledges that it has not received or relied on any guarantee, express or implied, as to the revenues, profits or likelihood of success of the Franchised Business. Franchisee represents and acknowledges that there have been no representations by Franchisor's officers, directors, employees or agents that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure Document or this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
Based on the 2024 All States M.E.D. Franchise Disclosure Document, there is no explicit mention in the provided exhibits of a franchisee agreement or representation specifically concerning Item 19. Item 19 typically contains financial performance representations, which are optional for franchisors to include.
However, the FDD does include a general statement regarding the franchisee's responsibility to conduct their own investigation and acknowledge the risks involved in the business. Specifically, the franchisee represents that they have conducted an independent investigation of the business and acknowledges that an investment in an All States M.E.D. Business involves business risks. The franchisee also acknowledges that the success of the venture depends on their own abilities and efforts.
Furthermore, the franchisee represents that they have not received or relied on any guarantees regarding the revenues, profits, or likelihood of success of the franchised business. They also acknowledge that there have been no representations by All States M.E.D.'s officers, directors, employees, or agents that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure Document or the Franchise Agreement. This suggests that the franchisee is responsible for verifying information and not relying on any verbal or implied guarantees of financial performance outside of the documented agreements. Prospective franchisees should confirm with All States M.E.D. whether an Item 19 is available and carefully review any financial performance representations provided.