Does the All States M.E.D. Franchisee Disclosure Questionnaire require me to acknowledge that there is no guarantee my business will be profitable?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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)
According to the 2024 All States M.E.D. Franchise Disclosure Document, franchisees must acknowledge that there is no guarantee of success for the franchised business. The franchisee must represent and acknowledge that they have not received or relied on any guarantee, express or implied, regarding the revenues, profits, or likelihood of success.
This acknowledgement confirms that All States M.E.D. makes no warranties or representations about the potential success of the business venture. The success of the All States M.E.D. business depends on various factors, including the franchisee's business abilities and efforts.
This is a standard practice in franchising, as the franchisor cannot control all the variables that affect a franchisee's success. Prospective franchisees should carefully consider this and conduct their own independent investigation of the business opportunity, seeking advice from legal and financial advisors.