Can the All States M.E.D. franchisor require all persons owning interest in the transferee to execute the then-current franchise agreement?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, the franchisor can require all persons owning any interest in the transferee to execute the then-current franchise agreement for new franchisees. This agreement may differ substantially from the original agreement, potentially including different Royalty Fees and other material provisions. The new franchise agreement will be for the term specified in that agreement.

This requirement is part of the conditions that must be met for a franchise transfer to be approved. The prospective transferee must also satisfy All States M.E.D. that they meet the franchisor's management, business, and financial standards. They must also possess the character and capabilities, including business reputation and credit rating, that All States M.E.D. may require to demonstrate the ability to conduct the franchised business.

For a potential franchisee, this means that if they plan to transfer their All States M.E.D. franchise in the future, the individuals or entities acquiring the franchise may be subject to terms that are significantly different from the original agreement. This could impact the attractiveness of the franchise to potential buyers and should be carefully considered during the initial franchise purchase.