factual

Does the All States M.E.D. franchisee have rights to provide the same products or services if the franchisor gives consent to another franchisee to provide certain products or services not authorized for general use?

All_States_M_E_D Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 13.1.3 Franchisor has the right to designate certain products and services, not otherwise authorized for general use as part of the System, to be offered locally or regionally based upon such factors as Franchisor determines including, but not limited to, franchisee qualifications, test marketing and regional or local differences.

Franchisor has the right to give its consent to one (1) or more franchisees to provide certain products or services not authorized for general use as part of the System.

Such consent will be based upon the factors in Section 10.4 and shall not create any rights in Franchisee to provide the same products or services.

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 grant of consent to one franchisee to provide specific products or services not generally authorized within the All States M.E.D. system does not automatically extend those rights to other franchisees. This means that even if All States M.E.D. allows another franchisee to offer a new product or service, a franchisee does not have the right to offer the same product or service simply because another franchisee was granted permission.

All States M.E.D. may choose to allow certain products or services to be offered locally or regionally based on factors they deem relevant, such as franchisee qualifications, test marketing results, and regional or local market differences. The decision to grant consent to a franchisee is based on considerations outlined in Section 10.4 of the agreement, which are not detailed in the provided excerpts.

This policy ensures that All States M.E.D. retains control over the products and services offered under its brand and can tailor offerings to specific market conditions or franchisee capabilities. For a prospective franchisee, this means they cannot assume they will be able to offer every product or service that another franchisee is authorized to provide. It is important to discuss with All States M.E.D. the criteria and process for obtaining approval to offer specialized or non-standard products and services within their franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.