Does the All States M.E.D. franchisee have the right to select any designated manager?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Either the Franchisee or its on-site Designated Manager must devote sufficient efforts to the management of the day-to-day operations of the Franchised Business, but not less than forty (40) hours per week. While you have the right to select any Designated Manager, we retain the right to accept or reject any proposed individual or entity as the Designated Manager. You will be responsible for the compensation to any individual or entity you contract to act as the Designated Manager of the Business. You have the sole legal responsibility for any dispute relating to such individual or entity. We maintain the right to require any approved Designated Manager to attend and satisfactorily complete our initial training program before opening the Business. You must keep us informed at all times of the identity of your Designated Manager. If you must replace the Designated Manager, your replacement Manager must be approved by us within 60 days, such approval not to be unreasonably withheld – we may additionally require such replacement Designated Manager to attend and complete our training program at your expense. If the Franchisee is an entity, its Designated Manager is not required to own an equity interest in the Franchisee.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 31)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees have the right to select their own designated manager for the day-to-day operations of the franchised business. However, this right is conditional, as All States M.E.D. retains the right to approve or reject any proposed individual or entity as the designated manager.
This means that while a franchisee can choose their preferred manager, All States M.E.D. has the final say in whether that person is suitable for the role. The franchisee is responsible for compensating the designated manager and bears sole legal responsibility for any disputes related to their employment.
All States M.E.D. also maintains the right to require any approved designated manager to attend and satisfactorily complete their initial training program before the business opens. Furthermore, the franchisee must keep All States M.E.D. informed of the identity of their designated manager at all times. If the franchisee needs to replace the designated manager, the replacement must be approved by All States M.E.D. within 60 days, and this approval will not be unreasonably withheld. All States M.E.D. may also require the replacement manager to attend and complete the training program at the franchisee's expense.
If the franchisee is a business entity, the designated manager is not required to own an equity interest in the franchisee. This provides flexibility in structuring the management of the All States M.E.D. franchise.