Is an All States M.E.D. franchisee authorized to make contracts on behalf of the franchisor?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement is purely a contractual relationship between the parties and does not appoint or make Franchisee an agent, legal representative, joint-venturer, partner, employee, servant, or independent contractor of Franchisor for any purpose whatsoever. Franchisee may not represent or imply to third parties that Franchisee is an agent of Franchisor, and Franchisee is in no way authorized to make any contract, agreement, warranty, or representation on behalf of Franchisor, or to create any obligation, express or implied, on Franchisor's behalf. During the term of this Agreement, and any extension or renewal hereof, Franchisee shall hold itself out to the public only as a franchisee and an owner of the Franchised Business operating the Franchised Business according to a franchise from Franchisor. Franchisee shall take such affirmative action as may be necessary to do so including, without limitation, exhibiting a notice of that fact in a conspicuous place on all forms, stationery or other written materials, the content of which Franchisor has the right to specify. Under no circumstances shall Franchisor be liable for any act, omission, contract, debt, nor any other obligation of Franchisee. Franchisor shall in no way be responsible for any injuries to persons or property resulting from the operation of the Franchised Business by Franchisee. Any third-party contractors and vendors retained by Franchisee to convert or construct the premises are independent contractors of Franchisee alone.
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 agreement between the franchisor and franchisee is purely contractual and does not establish the franchisee as an agent or legal representative of All States M.E.D. for any purpose. The franchisee is explicitly prohibited from representing themselves as an agent of All States M.E.D. to third parties.
Specifically, the franchisee is not authorized to enter into any contracts, agreements, warranties, or representations on behalf of All States M.E.D., nor can they create any obligations, whether express or implied, for the franchisor. During the term of the franchise agreement, the franchisee must present themselves to the public solely as a franchisee and owner of the All States M.E.D. business, operating under a franchise from the franchisor.
To ensure clarity, the franchisee is required to take affirmative steps to communicate their status as a franchisee, including displaying a notice of this fact in a conspicuous location on all forms, stationery, and other written materials. The franchisor retains the right to specify the content of this notice. Under no circumstances will All States M.E.D. be liable for any act, omission, contract, debt, or other obligation of the franchisee, nor will they be responsible for injuries to persons or property resulting from the franchisee's operation of the business. Any third-party contractors or vendors hired by the franchisee for premises conversion or construction are considered independent contractors of the franchisee alone.