Can All States M.E.D. franchisees engage in internet and social media marketing that extends outside their territory?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
incur in selling the item (e.g., credit card fees and shipping costs).
You and other franchisees may not solicit (but may accept) orders from consumers outside of your territory, including through the use of other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, but you may engage in internet and social media marketing pursuant to our guidelines which such marketing may extend outside your territory. We also reserve the right to implement cross-territorial protocols and other guidelines applicable to such situations as group advertising buys by multiple franchisees which may extend into multiple territories, solicitation of orders of individuals who may reside in one territory, yet work in another, and other cross-territorial situations. You agree to abide by any such cross-territorial protocols.
Neither we nor an affiliate operates, franchises, or has plans to operate or franchise a business under a different trademark which such business sells or will sell goods or services similar to those you will offer, but we reserve the right to do so.
Area Developers:
Under the Area Development Agreement (the "ADA"), you will develop, open and operate multiple outlets within a defined Development Area (the "Development Area"). We determine the Development Area using the same criteria that we use in deciding the Territory for a Business.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees are permitted to engage in internet and social media marketing that may extend outside their designated territory, provided they adhere to All States M.E.D.'s guidelines. However, franchisees may not actively solicit orders from consumers outside of their territory through any channels, including the internet, but they can accept orders that originate from outside their territory. All States M.E.D. retains the right to implement cross-territorial protocols to manage situations like group advertising buys and orders from individuals who live in one territory but work in another.
This policy allows All States M.E.D. franchisees to leverage online marketing to increase brand awareness beyond their immediate geographic area, which can be beneficial in today's digital marketplace. However, it's crucial for franchisees to understand and follow All States M.E.D.'s specific guidelines for internet and social media marketing to avoid violating the territorial restrictions. The potential for cross-territorial protocols also means that franchisees must stay informed about any changes to these rules and be prepared to adapt their marketing strategies accordingly.
All States M.E.D. also compensates franchisees for internet sales made through their website, www.allstatesmed.com, if the purchase originates from an address within the franchisee's territory. The compensation is the gross revenue from the sale, less the royalty fee, the cost of the item, and any other costs incurred by All States M.E.D. in making the sale, such as credit card fees and shipping costs. This compensation structure incentivizes franchisees to support and promote the All States M.E.D. online platform, even though the company manages the direct sales.