Does All States M.E.D. generally own the premises and lease it to the franchisee?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
We provide site selection criteria to you to assist you in locating a site for the Franchised Business. We do not generally own the premises and lease it to you. We consider the following factors when reviewing a proposed site: (i) residential population, (ii) income levels, (iii) demographics, (iv) competition, (v) visibility, (vi) proximity to other franchised or affiliate locations, (vii) accessibility, (viii) traffic, (ix) size, (x) condition and character, (xi) parking, and (xii) available signage. (Franchise Agreement, Section 8.2).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–27)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the company does not generally own the premises and lease it to the franchisee. The franchisee is responsible for securing a location for the business. All States M.E.D. provides site selection criteria to assist in this process and considers factors such as residential population, income levels, demographics, competition, visibility, proximity to other locations, accessibility, traffic, size, condition and character, parking, and available signage when reviewing a proposed site.
Within 90 days of signing the Franchise Agreement, the franchisee must secure a location, including obtaining All States M.E.D.'s approval. All States M.E.D. will generally approve or deny the selected location within 10 days but reserves the right to take additional time if needed. The franchisee must then sign the lease or secure the legal right to occupy the location within 15 days of approval, meeting all state and local specifications.
If the franchisee and All States M.E.D. cannot agree on a site within the allotted time, All States M.E.D. can either grant more time or terminate the Franchise Agreement. This indicates the importance of site selection and the potential consequences of not meeting the franchisor's criteria or deadlines. The franchisee bears the responsibility of finding and securing a suitable location, which includes negotiating lease terms and ensuring compliance with local regulations.