Is the franchisee required to release and hold All States M.E.D. harmless from claims resulting from a potential transferee's inspection of records?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor has the right, without liability of any kind or nature whatsoever to Franchisee, to make available for inspection by any intended transferee of Franchisee all or any part of Franchisor's records relating to this Agreement, the Franchised Business or to the history of the relationship of the parties hereto. Franchisee hereby specifically consents to such disclosure by Franchisor and shall release and hold Franchisor harmless from and against any claim, loss or injury resulting from an inspection of Franchisor's records relating to the Franchised Business by an intended transferee identified by Franchisee.
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 is required to release and hold All States M.E.D. harmless from claims resulting from a potential transferee's inspection of records. Specifically, the franchisee must consent to All States M.E.D. disclosing records related to the franchise agreement, the franchised business, or the history of the relationship between the parties to any intended transferee identified by the franchisee.
This means that All States M.E.D. has the right to make available its records to potential buyers of the franchise. The franchisee specifically consents to this disclosure.
The franchisee must release and hold All States M.E.D. harmless from any claims, losses, or injuries that may arise from the intended transferee's inspection of All States M.E.D.'s records related to the franchised business. This clause protects All States M.E.D. from potential liabilities related to the disclosure of information to prospective buyers of the franchise.