What happens if an All States M.E.D. franchisee fails to comply with a mandatory specification prescribed in writing?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.2.2 Except as otherwise provided in Section 16.2.1, Franchisor has the right to terminate this Agreement for the following breaches and defaults by giving notice of such termination stating the nature of the default; provided, however, that Franchisee may avoid termination by curing such default or failure (or by providing proof acceptable to Franchisor that Franchisee has made all reasonable efforts to cure such default or failure and shall continue to make all reasonable efforts to cure until a cure is effected if such default or failure cannot reasonably be cured before the effective date of the termination) within the specified period:
- (c) within thirty (30) days of receiving notice of any other default by Franchisee or upon Franchisee's failure to comply with any mandatory specification, standard, or operating procedure prescribed in the Operations Manual or otherwise prescribed in writing.
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 fails to comply with any mandatory specification, standard, or operating procedure prescribed in the Operations Manual or otherwise prescribed in writing, All States M.E.D. has the right to terminate the Franchise Agreement. However, the franchisee may avoid termination by curing the failure within thirty (30) days of receiving notice of the failure.
All States M.E.D. may deliver a notice of termination stating the nature of the default. If the franchisee provides proof acceptable to All States M.E.D. that they have made all reasonable efforts to cure such default or failure and shall continue to make all reasonable efforts to cure until a cure is effected if such default or failure cannot reasonably be cured before the effective date of the termination, termination may be avoided.
It is important to note that in California, the addendum to the franchise agreement states that All States M.E.D. may terminate the agreement without notice and the opportunity to cure if the franchisee breaches the franchise agreement three or more times in a 12-month period, whether or not corrected after notice. This highlights the importance of adhering to all mandatory specifications and operating procedures to maintain the franchise agreement in good standing.