For All States M.E.D., what is the franchisee representing by signing the document?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee represents that it has been urged to consult with its own advisors with respect to the legal, financial and other aspects of this Agreement, the business franchised hereby and the prospects for that business. Franchisee represents that it has either consulted with such advisors or has deliberately declined to do so.
24.3 True and Accurate Information
Franchisee represents that all information in any and all applications, financial statements, and submissions to Franchisor is true, complete, and accurate in all respects, and Franchisee acknowledges that Franchisor is relying upon the truthfulness, completeness, and accuracy of such information.
24.4 Risk
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.
24.6 No Violation of Other Agreements
Franchisee represents that its execution of this Agreement will not violate any other agreement or commitment to which Franchisee or any holder of a legal or beneficial interest in Franchisee is a party.
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, the franchisee makes several key representations when signing the franchise agreement. These representations are crucial as All States M.E.D. relies on them in approving the franchise.
First, the franchisee affirms they have been urged to seek advice from their own legal and financial advisors regarding the franchise agreement, the business itself, and its potential. The franchisee confirms they either consulted with these advisors or consciously chose not to. This highlights the importance of due diligence and understanding the risks and opportunities associated with the All States M.E.D. franchise.
Second, the franchisee confirms that all information provided in applications, financial statements, and other submissions to All States M.E.D. is truthful, complete, and accurate. This representation is critical because All States M.E.D. relies on this information when making its decision to award the franchise. Furthermore, the franchisee acknowledges they have conducted an independent investigation of the business and understand that, like any business venture, investing in an All States M.E.D. franchise involves risks, and success depends on the franchisee's abilities and efforts. All States M.E.D. makes no guarantees about the potential success of the business.
Finally, the franchisee represents that they have not received or relied on any guarantees regarding the revenues, profits, or likelihood of success of the franchised business. They also confirm that no representations made by All States M.E.D.'s officers, directors, employees, or agents are inconsistent with the Franchise Disclosure Document or the franchise agreement. The franchisee also represents that signing the agreement does not violate any other agreements or commitments they may have. These representations protect All States M.E.D. from future claims based on misunderstandings or reliance on information outside the official documents.