Is an All States M.E.D. franchisee required to submit copies of state sales tax returns to the Franchisor?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall submit to Franchisor copies of all state sales tax returns that are required to be filed with the appropriate governmental agency and such other records as Franchisor may reasonably
request from time to time or as specified in the Operations Manual. Franchisor shall have the right to release financial and operational information relating to the Franchised Business to Franchisor's lenders or prospective lenders. Franchisee shall certify as true and correct all reports to be submitted according to this Agreement.
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 are required to submit copies of all state sales tax returns to the franchisor. These copies must be those that the franchisee is already required to file with the appropriate governmental agency.
In addition to sales tax returns, All States M.E.D. franchisees must also provide other records that the franchisor may reasonably request from time to time or as specified in the Operations Manual. The franchisor also has the right to release financial and operational information about the franchised business to its lenders or prospective lenders.
All States M.E.D. franchisees must certify that all reports submitted under the agreement are true and correct. This highlights the importance of maintaining accurate records and complying with all reporting requirements to avoid potential issues with the franchisor.