Does All States M.E.D. grant franchisees options or rights of first refusal to acquire additional franchises?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, All States M.E.D. does not grant franchisees options, rights of first refusal, or similar rights to acquire additional franchises. However, All States M.E.D. may grant additional franchise territories if they feel a franchisee has the time, energy, capital, and management structure to successfully open and operate another territory.

For prospective franchisees, this means that while you won't have a contractual guarantee to expand your business with additional All States M.E.D. locations, the possibility exists. Your ability to acquire additional territories will depend on All States M.E.D.'s assessment of your capabilities and resources. This is a fairly common practice in franchising, as franchisors want to ensure that franchisees are capable of managing multiple units effectively to maintain brand standards and customer service levels.

For Area Developers, the FDD states that when seeking to open further outlets under the Area Development Agreement (ADA), All States M.E.D. will apply its then current site selection criteria to approve or disapprove of such outlets. The ADA will contain a Development Schedule, and failure to meet this schedule may result in the termination of rights to open future territories under the ADA, although existing franchise agreements will not be terminated.