Can All States M.E.D. franchisees offer products or services that the franchisor has not approved?
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 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 offe
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees are generally prohibited from offering products or services that All States M.E.D. has not approved. The franchisee must offer all services and products currently offered by All States M.E.D., or which will be offered in the future.
However, All States M.E.D. does have 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 All States M.E.D. determines, 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.
The cost to review a new product or service proposed by the franchisee will not exceed $1,000 per product or service. All States M.E.D. also retains the right to review its approval of any items or suppliers and may revoke approval 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 cease using, selling, or providing them at their own expense.