For All States M.E.D., does the Franchisor's consent to a transfer waive any claims against the transferee?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, the franchisor's consent to a transfer of any interest in the Franchise Agreement or any ownership interest in the franchised business does not constitute a waiver of any claims All States M.E.D. may have against the transferor or the transferee. It also does not waive All States M.E.D.'s right to demand compliance with the terms of the Franchise Agreement.

This means that even if All States M.E.D. approves a transfer of the franchise to a new owner, they still retain the right to pursue any existing or future claims against both the original franchisee (transferor) and the new franchisee (transferee). This could include claims related to breaches of the Franchise Agreement, outstanding payments, or any other issues that may arise.

For a prospective All States M.E.D. franchisee, this clause highlights the importance of ensuring full compliance with the Franchise Agreement, even when considering a transfer. Both the seller and the buyer should be aware that the franchisor's approval of the transfer does not absolve them of any past or future liabilities related to the franchise. This provision is fairly standard in franchise agreements, as it protects the franchisor's interests and ensures continued compliance with the franchise terms, regardless of ownership changes.