For All States M.E.D., does the Franchisor's consent to a transfer waive the Franchisor's right to demand compliance with the terms of the Agreement?

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 of any ownership interest in the franchised business does not constitute a waiver of any claims that All States M.E.D. may have against the transferor or the transferee. Furthermore, it is not considered a waiver of All States M.E.D.'s right to demand compliance with the terms of the agreement.

This means that even if All States M.E.D. approves a transfer of the franchise to a new owner, they still retain all rights to pursue any existing claims against the original franchisee (the transferor) or the new franchisee (the transferee) for any breaches of the Franchise Agreement. This also means All States M.E.D. can still enforce all terms of the Franchise Agreement against both parties.

For a prospective franchisee, this clause highlights the importance of ensuring full compliance with the Franchise Agreement, even when considering a transfer. The original franchisee remains liable for any breaches that occurred during their tenure, and the new franchisee steps into the agreement with the understanding that All States M.E.D. can enforce all terms against them as well. This provision protects All States M.E.D.'s interests by ensuring continued compliance and recourse for any violations, regardless of franchise ownership changes.