What is the high-end estimate for the Area Development Fee for All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Low | High | ||||
| Area Development Fee (Note 1) | $200,000 | $300,000 | Lump Sum | Upon entering into Area Development Agreement | Us |
| Initial Investment for | $88,500 | $155,500 | See Chart 7(A) above. | ||
| Your Initial Franchised | |||||
| Business (Note 2) | |||||
| TOTAL | $288,500.00 | $455,500.00 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Area Development Fee ranges from $200,000 to $300,000 for three to five territories. The high-end estimate for the Area Development Fee is $300,000. This fee is paid as a lump sum upon entering into the Area Development Agreement.
The Area Development Fee covers the right to open and operate between three and five franchised businesses within a specific Development Area, as well as the cost of opening the first franchised business. It also includes the Initial Franchise Fee for the first territory and one-half of the Initial Franchise Fee for any additional territories. The remaining half of the Initial Franchise Fee for subsequent territories is due when you enter into individual Franchise Agreements for those territories.
Prospective franchisees should note that this fee is in addition to the initial investment required to open the first franchised business. The FDD estimates the initial investment for the first franchised business to range from $88,500 to $155,500. Therefore, the total initial financial commitment for an Area Development Agreement could range from $288,500 to $455,500.