Must an All States M.E.D. franchisee stop offering services or products that All States M.E.D. disapproves of?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchise Agreement.
ITEM 16. RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must offer and sell all the services and products we specify. You may not sell any services or products that we have not authorized and you must discontinue offering any services or products that we may disapprove of. We may take action, including terminating your franchise if you purchase or sell unapproved products or make purchases from unapproved suppliers. We may periodically change required
or authorized services or products. There are no limits on our right to do so, except that your investment required to change required or authorized products or services will not be unreasonably disproportionate to your initial investment.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 31–32)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, franchisees must offer and sell only the services and products that All States M.E.D. specifies. An All States M.E.D. franchisee is not allowed to sell any services or products that All States M.E.D. has not authorized.
Furthermore, the FDD states that an All States M.E.D. franchisee must discontinue offering any services or products that All States M.E.D. may disapprove of. If a franchisee purchases or sells unapproved products or makes purchases from unapproved suppliers, All States M.E.D. may take action, including terminating the franchise agreement.
All States M.E.D. retains the right to periodically change the required or authorized services or products. The only limitation on this right is that the investment required of the franchisee to implement these changes cannot be unreasonably disproportionate to their initial investment. All States M.E.D. may also allow certain services or products not generally authorized to be offered locally or regionally based on factors such as test marketing, franchisee qualifications, and regional or local differences.
These stipulations are typical in franchising, as they allow the franchisor to maintain brand consistency and quality control across all locations. Prospective All States M.E.D. franchisees should carefully consider these restrictions and ensure they are comfortable adhering to the franchisor's approved list of services and products.