What happens if consent from another party is needed for an agreement related to the All States M.E.D. franchise transfer?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) the Controlled Entity has entered into a written agreement with Franchisor expressly assuming the obligations of this Agreement and all other agreements relating to the operation of the Franchised Business. If the consent of any other party to any such other agreement is required, Franchisee has obtained such written consent and provided the same to Franchisor prior to consent 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 a franchisee wishes to transfer their agreement to a Controlled Entity (a corporation, limited liability company, or other legal entity entirely owned by the franchisee), and if any other agreement related to the operation of the franchised business requires consent from another party, the franchisee must obtain that consent in writing and provide it to All States M.E.D. before All States M.E.D. will consent to the transfer. This condition is part of the requirements for transferring the franchise to a Controlled Entity formed for the franchisee's financial planning or tax convenience.
This requirement ensures that all existing agreements related to the franchise remain valid and enforceable even after the transfer to the Controlled Entity. It protects All States M.E.D.'s interests by ensuring that third-party agreements necessary for the business's operation are not jeopardized by the transfer. The franchisee bears the responsibility of securing this consent, adding an extra step to the transfer process.
For a prospective All States M.E.D. franchisee, this means that if they plan to transfer their franchise to a Controlled Entity, they need to carefully review all agreements related to the franchise to identify any that require third-party consent for transfer. They should factor in the time and effort required to obtain such consents when planning the transfer. Failure to obtain the necessary consents could delay or even prevent the transfer from being approved by All States M.E.D.