What are the franchisee's obligations if a substitute manager for an All States M.E.D. franchise needs to complete the initial training program?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
expenses, for such additional assistance.
8.3 Failure to Complete Initial Training Program
If Franchisor determines that the Franchisee is unable to satisfactorily complete the training program described above, Franchisor has the right to terminate this Agreement and retain the Franchise Fee. If Franchisee is a business entity and the Manager fails to complete the initial training program to Franchisor's reasonable satisfaction, Franchisee may be permitted to select a substitute manager and such substitute manager must complete the initial training to Franchisor's satisfaction. Franchisee will be
required to pay Franchisor's then-current rates for additional training or $250 per day per person, which
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 a franchisee's manager fails to complete the initial training program to All States M.E.D.'s satisfaction, the franchisee may select a substitute manager. The substitute manager must then complete the initial training program to All States M.E.D.'s satisfaction.
The franchisee is obligated to pay All States M.E.D.'s then-current rates for additional training or $250 per day per person, whichever is greater. This charge covers providing the substitute manager with the initial training program at All States M.E.D.'s location. Alternatively, the franchisee can opt for training at their own location, but they will still be responsible for All States M.E.D.'s then-current rates for additional training or $250 per day per person, whichever is greater, in addition to covering the trainer's hotel, airfare, and other expenses.
This means that franchisees need to budget for potential additional training costs if their initial manager does not pass the training or if they need to replace a manager. The costs can vary depending on whether the training occurs at All States M.E.D.'s location or the franchisee's location, with the latter incurring additional travel-related expenses for the trainer. Franchisees should confirm the 'then-current rates' for additional training with All States M.E.D. to accurately estimate these potential costs.