Who is the Franchisor mentioned in the Unlimited Guaranty and Assumption of Obligations for All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
In consideration of, and as an inducement to, the execution of that certain Franchise Agreement dated herewith ("Agreement") by All States M.E.D. Franchising, LLC ("Franchisor"), each of the undersigned hereby personally and unconditionally guarantees to Franchisor and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement, that
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, the franchisor mentioned in the Unlimited Guaranty and Assumption of Obligations is All States M.E.D. Franchising, LLC. This entity is the one granting the franchise and to whom the franchisee's obligations are guaranteed.
The Unlimited Guaranty and Assumption of Obligations is a document that certain individuals must sign, specifically those holding a legal or beneficial interest of 5% or greater in the franchisee. By signing this guaranty, these individuals agree to personally assume and discharge all of the franchisee's obligations under the Franchise Agreement, making them personally liable for the franchisee's performance.
This requirement ensures that All States M.E.D. has recourse to the personal assets of the franchisee's owners or major stakeholders if the franchise business fails to meet its financial or operational obligations. It is a common practice in franchising to seek such guarantees to mitigate the risk of franchisee default and to ensure the franchisor has additional security for the franchisee's performance under the agreement.