Does the All States M.E.D. franchisee have any entitlement to benefits the franchisor receives from suppliers?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1.4 Franchisor has the right to retain volume rebates, markups, and other benefits from suppliers or in connection with the furnishing of supplies.
Franchisee shall have no entitlement to or interest in any such benefits.
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 franchisee is not entitled to any benefits that All States M.E.D. receives from its suppliers. Specifically, All States M.E.D. retains the right to volume rebates, markups, and other benefits from suppliers related to furnishing supplies.
This means that any financial advantages, such as discounts or rebates, that All States M.E.D. negotiates with its suppliers will be retained by All States M.E.D. and will not be passed on to the franchisee. This is a fairly common practice in franchising, as it allows the franchisor to potentially increase its revenue streams.
As an All States M.E.D. franchisee, you should be aware that while you may be required to purchase supplies from approved suppliers, you will not directly benefit from any special deals or rebates that All States M.E.D. secures with those suppliers. This could impact your overall profitability, so it's important to factor this into your financial projections.