What must an All States M.E.D. franchisee do before the initial fees are due?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
develop the Franchised Business, in accordance with the other provisions of this Section 5 and within 300 days after this Effective Date, Franchisor has the right to terminate this Agreement and retain all fees paid to Franchisor by Franchisee.
5.3 Opening
Before opening the Franchised Business and commencing business, Franchisee must:
- (a) fulfill all of the obligations of Franchisee according to the other provisions of this Section 5;
- (b) furnish Franchisor with copies of all insurance policies required by this Agreement, or by the lease, or such other evidence of insurance coverage and payment of premiums as Franchisor may request;
- (c) complete initial training to the satisfaction of Franchisor;
- (d) possess all required state, county, city, and local professional licenses and certifications;
- (e) obtain all necessary state, county, city, and local permits and licenses;
- (f) pay in full all amounts due to Franchisor;
- (g) if Franchisee is a business entity, Franchisee has caused each of its stock certificates or other ownership interest certificates to be conspicuously endorsed upon the face thereof a statement in a form satisfactory to Franchisor that such ownership interest is held subject to, and that further assignment or transfer thereof is subject to, all restrictions imposed upon transfers and assignments by this Agreement; and
- (h) obtain Franchisor's permission and approval of an opening date;
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, before opening their franchised business and commencing operations, a franchisee must fulfill several obligations. These include meeting all requirements outlined in Section 5 of the franchise agreement, providing copies of all required insurance policies (or evidence of coverage and premium payments), and completing initial training to All States M.E.D.'s satisfaction.
Additionally, the franchisee must possess all necessary state, county, city, and local professional licenses and certifications, as well as obtain all necessary state, county, city, and local permits and licenses. They must also pay in full all amounts due to All States M.E.D.
If the franchisee is a business entity, they must ensure that all stock certificates or ownership interest certificates are endorsed with a statement, in a form satisfactory to All States M.E.D., indicating that the ownership interest is subject to transfer restrictions outlined in the agreement. Finally, the franchisee must obtain All States M.E.D.'s permission and approval of an opening date, which will be based on All States M.E.D.'s determination that the franchisee is ready and prepared to operate the business.