Does the All States M.E.D. franchisor have the right to retain markups from suppliers?

According to the 2024 All States M.E.D. Franchise Disclosure Document, All States M.E.D. has the right to retain volume rebates, markups, and other benefits from suppliers. This applies to benefits received in connection with furnishing supplies to franchisees.

For a prospective franchisee, this means that All States M.E.D. is entitled to any financial benefits, such as markups or rebates, that they negotiate with suppliers. The franchisee will not have any claim to these benefits. This is a fairly common practice in franchising, as it allows the franchisor to potentially offset costs or generate additional revenue.

The FDD states that the franchisee has no entitlement to or interest in any such benefits. This is something to consider when evaluating the overall cost and potential profitability of an All States M.E.D. franchise. Franchisees should focus on the prices they pay for supplies and the potential revenue they can generate from sales, rather than expecting to share in any supplier rebates or markups retained by All States M.E.D.