Must an All States M.E.D. franchisee comply with the franchisor's then-current qualifications for a new franchisee to obtain a successor franchise?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee must comply with the franchisor's then-current qualifications for a new franchisee to obtain a successor franchise. To qualify for a successor franchise, the franchisee must meet several preconditions.

Specifically, the franchisee must have fully complied with all material provisions of the existing agreement during its entire term, made necessary capital expenditures to maintain uniformity with system modifications, and satisfied all monetary obligations to All States M.E.D. Additionally, the franchisee must not be in default of any agreement with All States M.E.D. and must provide written notice of their intent to operate a successor franchise at least nine months, but no more than twelve months, before the current term ends.

The franchisee is required to execute All States M.E.D.'s then-current form of franchise agreement, which may have different terms, including a potentially different Royalty Fee. However, the franchisee will not be required to pay the then-current Franchise Fee. Furthermore, the franchisee must comply with the franchisor's then-current qualifications for new franchisees, agree to any training requirements, and execute a general release of claims against All States M.E.D. Lastly, the franchisee must pay a renewal fee of $10,000.