What is the All States M.E.D. franchisee's obligation to execute a standard form purchase or supply agreement if the franchisor or an affiliate is an approved supplier?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, if All States M.E.D. or one of its affiliates is an approved supplier, the franchisee is required to execute a standard form purchase or supply agreement for the items to be supplied by All States M.E.D. or its affiliate. This means that franchisees do not have a choice in the matter and must use the franchisor or its affiliate as a supplier if they are approved.

This requirement ensures that All States M.E.D. franchisees obtain supplies from a source that meets the franchisor's standards. It also allows All States M.E.D. to maintain consistency across all franchise locations. While this may limit the franchisee's ability to shop around for better prices, it also provides assurance that the supplies will be of a certain quality.

It is important for prospective franchisees to carefully review the standard form purchase or supply agreement to understand the terms and conditions of purchasing supplies from All States M.E.D. or its affiliate. This includes pricing, payment terms, delivery schedules, and any other relevant details. Franchisees should also inquire about the process for becoming an approved supplier if they wish to use alternative suppliers in the future, although approval is not guaranteed.