Must an All States M.E.D. franchisee comply with Section 19 requirements to transfer their franchise?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee must comply with the requirements outlined in Section 19 of the franchise agreement as part of the transfer process. Specifically, Item 23(a) states that the franchisee must have complied with Section 19 requirements to transfer the franchise. This indicates that adherence to Section 19 is a mandatory condition for the franchisor to approve a transfer.

Section 19 of the All States M.E.D. franchise agreement outlines the franchisor's right of first refusal. This means that before a franchisee can sell their business to a third party, they must first offer the franchise to All States M.E.D. on the same terms. The franchisor has a specified period, thirty (30) days, to decide whether to exercise this right. If All States M.E.D. declines to purchase the franchise, the franchisee is then free to proceed with the sale to the third party, subject to the franchisor's final approval as detailed in Section 18.2 of the franchise agreement.

However, there is an exception to the right of first refusal. If the franchisee intends to sell or transfer the All States M.E.D. franchise to a member of their family, the conditions of Section 19 do not apply. Despite this exception, the franchisee must still fully comply with the terms and conditions of Section 18.2 before completing the sale or transfer to a family member. This ensures that even family transfers meet certain standards and approvals set by All States M.E.D.