What must a franchisee execute to facilitate the release of records to All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Under Right To Inspect, at Franchisor's request Franchisee shall authorize Franchisor and/or its direct third party(s), including accounting and legal professionals, to release to Franchisor all accounting and financial records arising from or relating to the operation of the Franchised Business including, but not limited to, records evidencing Gross Revenues, profits, losses, income, tax liabilities, tax payments, revenues, expenses, and any correspondence, notes, memoranda, audits, business records, or internal accounts within said third parties' possession, custody or control, and to continue to release such records to Franchisor on a monthly basis for the length of the unexpired term of this Agreement or until such time as Franchisor withdraws its request. Franchisee shall execute all documents necessary to facilitate the release of records referenced herein to Franchisor.
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, a franchisee must execute all documents necessary to facilitate the release of accounting and financial records to All States M.E.D.. This requirement is part of All States M.E.D.'s right to inspect the franchisee's business operations.
Specifically, All States M.E.D. can request the franchisee to authorize the release of all accounting and financial records related to the operation of the franchised business. This includes, but is not limited to, records evidencing gross revenues, profits, losses, income, tax liabilities, tax payments, revenues, expenses, and any related correspondence, notes, memoranda, audits, business records, or internal accounts held by third parties such as accounting and legal professionals.
Furthermore, All States M.E.D. requires that these records be released to them on a monthly basis for the duration of the franchise agreement, unless All States M.E.D. withdraws the request. This ongoing access to financial records allows All States M.E.D. to monitor the franchisee's performance and ensure compliance with the franchise agreement.