What is the All States M.E.D. franchisor's obligation regarding inventory levels for supplies offered solely by the franchisor?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
by Franchisee, that Franchisor approves (and which are not thereafter disapproved) and that comply with Franchisor's specifications and quality standards. If required by Franchisor, any such items or services shall be purchased only from Franchisor. Franchisor shall maintain inventory levels for all supplies offered solely by Franchisor at a level sufficient to ensure prompt delivery to all Franchisees. Franchisee shall NOT offer for sale, sell or provide through the Franchised Business or from the Franchised Business any products or services that Franchisor has not approved. Furthermore, Franchisee must offer for sale all services and products currently offered by Franchisor or which will be offered by the Franchisor in the future.
- 13.1.2 Notwithstanding anything contrary in this Agreement, Franchisor has the right to review from time to time its approval of any items or suppliers.
Franchisor may revoke its approval of any item, service or supplier at any time by notifying Franchisee and/or the supplier.
Franchisee shall, at its own expense, promptly cease using, selling or providing any items or services disapproved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, if the franchisee is required to purchase certain items or services exclusively from All States M.E.D., then All States M.E.D. must maintain sufficient inventory levels to ensure prompt delivery to all franchisees. This obligation applies only to those supplies that franchisees are required to purchase solely from All States M.E.D.
This requirement ensures that franchisees are not unduly hindered in their business operations due to supply shortages of items they are mandated to purchase from the franchisor. It is a safeguard to ensure that All States M.E.D. can meet the demands of its franchise network.
However, All States M.E.D. retains the right to review and revoke approval of any items or suppliers at any time, which could impact the availability of certain products. Franchisees are obligated to cease using or selling any items or services that All States M.E.D. has disapproved, potentially affecting their service offerings. Franchisees should confirm what the typical delivery times are and if there have been any past issues with inventory.