What is the All States M.E.D. franchisee's obligation if the premises become unusable?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
(a) immediately cease to operate the Franchised Business and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor;
- (b) cease to use the Trade Secrets or other Confidential Information, the System and the Marks, including, without limitation, all slogans, symbols, logos, advertising materials, stationery, forms, and any other items which display or are associated with the Marks;
- (c) take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any assumed name or equivalent registration filed with state, city, or county authorities which contains the name "All States M.E.D." or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement;
- (d) pay all sums owing to Franchisor and any Affiliate. In the event of termination for any default of Franchisee, such sums shall include, but not be limited to, all damages, costs, and expenses, including reasonable attorneys' fees, with respect to litigation, arbitration, appellate, or bankruptcy proceedings, unpaid Royalty Fees, loss of future Royalty Fee payments incurred by Franchisor as a result of any early termination of this Agreement, and any other amounts due to Franchisor or any Affiliate;
- (e) pay to Franchisor all costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the Franchise in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement;
- (f) immediately return to Franchisor the Operations Manual, Trade Secrets, and all other Confidential Information, including records, files, instructions, brochures, agreements, disclosure statements, and any and all other materials provided by Franchisor to Franchisee relating to the operation of the Franchised Business (all of which are acknowledged to be Franchisor's property);
- (g) assign all telephone listings and numbers for the Franchised Business to Franchisor and shall notify the telephone company and all listing agencies of the termination or expiration of Franchisee's right to use any telephone numbers or facsimile numbers associated with the Marks in any regular, classified or other telephone directory listing and shall authorize transfer of same to or at the direction of Franchisor; and
- (h) comply with all other applicable provisions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the document does not specify the All States M.E.D. franchisee's obligations if the premises become unusable. However, the FDD does outline the franchisee's obligations upon termination or expiration of the franchise agreement.
Specifically, the franchisee must immediately cease operating the franchised business and cannot represent themselves as a current or former franchisee. They must also stop using All States M.E.D.'s trade secrets, confidential information, system, and marks, including all related materials. The franchisee is required to take necessary actions to cancel or assign any assumed names containing "All States M.E.D." to the franchisor and provide evidence of compliance within 30 days of termination or expiration.
Furthermore, the franchisee is obligated to pay all outstanding sums to All States M.E.D. and its affiliates, including damages, costs, attorney's fees, unpaid royalty fees, and any other amounts due. They must also return the operations manual, trade secrets, and all other confidential information to the franchisor. Additionally, the franchisee must assign all telephone listings and numbers for the franchised business to the franchisor and notify the telephone company and listing agencies of the termination of their right to use any telephone numbers associated with the marks.
To fully understand the obligations related to unusable premises, a prospective All States M.E.D. franchisee should inquire with the franchisor about specific scenarios, insurance requirements, and any clauses in the franchise agreement that address such situations. This will provide a clearer picture of the franchisee's responsibilities and potential liabilities in the event the premises become unusable.