What is the All States M.E.D. franchisee's obligation regarding offering services and products offered by the franchisor in the future?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
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 its approval of any item, service or supplier at any time by notifying Franchisee and/or the supplier. Franchisee shall, at its own expense, promptly cease using, selling or providing any items or services disapproved by Franchisor. The cost to review a new product or service as proposed by Franchisee shall not exceed $1,000.00 per product or service.
- 13.1.3 Franchisor 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 such factors as Franchisor determines including, but not limited to, franchisee qualifications, test marketing and regional or local differences. Franchisor has the right to give its consent to one (1) or more franchisees to provide certain products or services not authorized for general use as part of the System. Such consent will be b
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, franchisees must offer for sale all services and products currently offered by All States M.E.D., as well as any services and products that All States M.E.D. introduces in the future. However, franchisees cannot offer any products or services that All States M.E.D. has not approved.
All States M.E.D. retains the right to review and revoke approval of any items, services, or suppliers at any time by notifying the franchisee and/or the supplier. If All States M.E.D. disapproves of any items or services, the franchisee must stop using, selling, or providing them at their own expense.
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. All States M.E.D. can consent to one or more franchisees providing certain products or services not authorized for general use as part of the System, but such consent does not create any rights in the franchisee to provide the same products or services.
All States M.E.D. may charge a fee not exceeding $1,000.00 per product or service to review a new product or service proposed by the franchisee. Additionally, All States M.E.D. retains all volume rebates, markups, and other benefits from suppliers or in connection with furnishing supplies, and the franchisee has no entitlement to or interest in any such benefits.