What happens if an All States M.E.D. franchisee is convicted of a felony that adversely affects the reputation of the franchisor, franchisee, or franchised business?

According to the 2024 All States M.E.D. Franchise Disclosure Document, if a franchisee is convicted of a felony or pleads no contest to a crime that is likely to adversely affect the reputation of the franchisor, franchisee, or the franchised business, All States M.E.D. has the right to terminate the Franchise Agreement without providing an opportunity for the franchisee to cure the issue. This means the franchisee would not have a chance to correct the situation or appeal the decision before the termination takes effect.

Upon termination, the franchisee must immediately cease operating the All States M.E.D. business and cannot represent themselves as a current or former franchisee. They must also stop using All States M.E.D.'s trade secrets, confidential information, the System, and the Marks, including all related advertising materials and logos. The franchisee is obligated to cancel or assign any assumed names or registrations containing "All States M.E.D." or any other Mark to the franchisor.

Furthermore, the franchisee is responsible for paying all outstanding sums to All States M.E.D. and any affiliates, including damages, costs, expenses, reasonable attorneys' fees related to any legal proceedings, unpaid Royalty Fees, and any loss of future Royalty Fee payments resulting from the early termination. The franchisee must also return the Operations Manual, Trade Secrets, and all other Confidential Information to All States M.E.D. and assign all telephone listings and numbers for the franchised business to the franchisor.