What is the All States M.E.D. franchisee's obligation if the franchisor disapproves of an item or service?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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13.1.1 Franchisee acknowledges that the reputation and goodwill of the System is based in large part on offering high quality products and services to its customers. Accordingly, Franchisee shall provide or offer for sale or use at the Franchised Business only those services, with the greatest diligence and care
by Franchisee, that Franchisor approves (and which are not thereafter disapproved) and that comply with Franchisor's specifications and quality standards. If required by Franchisor, any such items or services shall be purchased only from Franchisor. Franchisor shall maintain inventory levels for all supplies offered solely by Franchisor at a level sufficient to ensure prompt delivery to all Franchisees. Franchisee shall NOT offer for sale, sell or provide through the Franchised Business or from the Franchised Business any products or services that Franchisor has not approved. Furthermore, Franchisee must offer for sale all services and products currently offered by Franchisor or which will be offered by the Franchisor in the future.
- 13.1.2 Notwithstanding anything contrary in this Agreement, Franchisor has the right to review from time to time its approval of any items or suppliers. Franchisor may revoke i
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, if All States M.E.D. disapproves of any items or services that a franchisee is using, selling, or providing, the franchisee must stop using, selling, or providing the disapproved items or services at their own expense. All States M.E.D. has the right to review and revoke approval of any items, services, or suppliers at any time by notifying the franchisee or supplier.
All States M.E.D. requires franchisees to offer for sale all services and products currently offered by the franchisor or which will be offered in the future. However, franchisees cannot offer for sale, sell, or provide any products or services that All States M.E.D. has not approved.
All States M.E.D. also 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 factors determined by All States M.E.D., including franchisee qualifications, test marketing, and regional or local differences. The cost to review a new product or service as proposed by the franchisee will not exceed $1,000 per product or service.