What happens if an All States M.E.D. franchisee fails to maintain the Franchised Business under the supervision of a Designated Manager following death or disability?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
having access to trade secrets or other confidential information sign nondisclosure and noncompetition agreements or, if requested, fail to provide us with copies of all signed nondisclosure and non-compete agreements; abandon the Franchised Business for 5 or more consecutive days; surrender or transfer control of the Franchised Business in an unauthorized manner; fail to maintain the Franchised Business under the supervision of a Designated Manager following your death or disability; submit reports on 2 or more separate occasions understating any amounts due by more than 2%; are insolvent; misuse or make unauthorized use of the Marks; fail on 2 or more occasions within any 12 months to submit reports or records or to pay any fees due us or any affiliate; violate on 2 or more occasions any health, safety or other laws or operate the Franchised Business in a manner creating a health or safety hazard to customers, employees or the public; take any action reserved to us; fail to comply with applicable law after notice; repeatedly breach the franchise agreement or comply with specifications; or default under any other agreement with us (or an affiliate) so that we (or the affiliate) have the right to terminate the agreement. However, we may not terminate franchise agreements already in place solely for a breach of the ADA.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–39)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, failure to maintain the Franchised Business under the supervision of a Designated Manager following the franchisee's death or disability constitutes grounds for termination of the franchise agreement. This means All States M.E.D. can terminate the agreement if the franchisee, or their representative, does not ensure proper management continuity after such events.
This provision underscores the importance All States M.E.D. places on consistent business operations and adherence to their standards, even in unforeseen circumstances. For a prospective franchisee, this highlights the need to have a clear succession plan or contingency in place to ensure the business continues to be managed by a qualified Designated Manager should death or disability occur.
It is important to note that the FDD does not specify a timeframe for rectifying the management situation or any specific procedures that All States M.E.D. would follow before terminating the agreement. A prospective franchisee should seek clarification from All States M.E.D. regarding the specific steps and timelines involved in such a scenario to fully understand their obligations and the potential consequences.