Is an All States M.E.D. franchisee required to offer for sale all services and products currently offered by the franchisor?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
not thereafter disapproved) and that comply with Franchisor's specifications and quality standards. If required by Franchisor, any such items or services shall be purchased only from Franchisor. Franchisor shall maintain inventory levels for all supplies offered solely by Franchisor at a level sufficient to ensure prompt delivery to all Franchisees. Franchisee shall NOT offer for sale, sell or provide through the Franchised Business or from the Franchised Business any products or services that Franchisor has not approved. Furthermore, Franchisee must offer for sale all services and products currently offered by Franchisor or which will be offered by the Franchisor in the future.
- 13.1.2 Notwithstanding anything contrary in this Agreement, Franchisor has the right to review from time to time its approval of any items or suppliers. Franchisor may revoke its approval of any item, service or supplier at any time by notifying Franchisee and/or the supplier. Franchisee shall, at its own expense, promptly cease using, selling or providing any items or services disapproved by Franchisor. The cost to review a new product or service as proposed by Franchisee shall not exceed $1,000.00 per product or service.
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, franchisees must offer for sale all services and products that are currently offered by All States M.E.D., as well as any services or products that All States M.E.D. may offer in the future. However, franchisees cannot offer any products or services that All States M.E.D. has not approved.
If a franchisee wants to offer a new product or service that All States M.E.D. hasn't approved, the franchisee must first submit sufficient information, specifications, and samples to All States M.E.D. for approval. The franchisee will bear any expenses All States M.E.D. incurs while determining whether to approve the new product or service. The cost to review a new product or service proposed by the franchisee will not exceed $1,000 per product or service.
All States M.E.D. also has the right to designate certain products and services to be offered locally or regionally based on factors determined by All States M.E.D., including franchisee qualifications, test marketing, and regional or local differences. All States M.E.D. can also allow individual franchisees to offer products or services not generally authorized as part of the All States M.E.D. system. This consent will be based on factors in Section 10.4 of the agreement and does not give other franchisees the right to offer the same products or services.