Is the All States M.E.D. franchisor responsible for injuries resulting from the franchisee's operation of the franchised business?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, the franchisor is not responsible for injuries to people or property caused by the franchisee's operation of the franchised business. The franchise agreement specifies that the relationship between the franchisee and All States M.E.D. is purely contractual. The franchisee is considered an independent entity and not an agent, legal representative, joint-venturer, partner, employee, servant, or independent contractor of All States M.E.D. for any purpose.

This means that the franchisee is responsible for all aspects of their business's operation, including any harm resulting from it. Franchisees must present themselves to the public solely as a franchisee operating under a franchise from All States M.E.D. and must take actions to ensure this is clear on all business materials.

This arrangement is typical in franchising, where franchisees are independent business owners. Franchisees generally carry their own insurance to cover potential liabilities. Prospective All States M.E.D. franchisees should ensure they have adequate insurance coverage and understand their responsibilities regarding the operation of their business to mitigate potential risks.