What happens if an All States M.E.D. area developer fails to meet the timing requirements in the Development Schedule?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree that you shall sign our then current franchise agreement, have an approved Location, and be open for business in each territory according to the Development Schedule in Appendix B ("Development Schedule"). Our then current franchise agreement may contain different or additional terms than those set forth in any franchise agreement signed concurrently with this Area Development Agreement. Time is of the essence for the development of each Location in accordance with the Development Schedule.
4. DEFAULT AND TERMINATION
If you fail to meet or satisfy the timing in the above Development Schedule, we may give you written notice of the default and if such default is not cured within thirty (30) days after notice of the default,
we may terminate your rights to develop any territories as to which you have breached the above Development Schedule. Also, this Agreement terminates if and when no Franchise Agreement is in place between the parties.
You agree that for our consideration in allowing the Development Schedule set forth above, we may keep as non-refundable all initial franchise fees and Development Fee you may have paid to us at any time.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, if an area developer fails to meet the timing requirements outlined in the Development Schedule, All States M.E.D. may issue a written notice of default. The area developer then has thirty (30) days to correct the default.
If the area developer does not cure the default within the 30-day period, All States M.E.D. has the right to terminate the developer's rights to develop any territories for which the Development Schedule was breached. Additionally, the Area Development Agreement automatically terminates if there is no Franchise Agreement in place between the parties.
Furthermore, the FDD states that All States M.E.D. is allowed to retain all initial franchise fees and Development Fees paid by the developer as non-refundable consideration for allowing the Development Schedule.