Who imposed the initial fee deferral requirement on All States M.E.D.?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, the Illinois Attorney General's Office imposed the initial fee deferral requirement. This requirement modifies Item 5 of the Disclosure Document, stipulating that All States M.E.D. defers collecting initial fees until they have fulfilled their pre-opening obligations to the franchisee and the franchisee has started business operations under the Franchise Agreement. The payment of the Development Fee is also deferred until the first franchise business opens.

This deferral was mandated due to All States M.E.D.'s financial condition. This means that franchisees in Illinois will not have to pay the initial franchise fees until certain conditions are met, specifically after All States M.E.D. has satisfied its pre-opening obligations and the franchisee has commenced business. This could be seen as a benefit to franchisees as it reduces their upfront financial burden and risk.

It is important to note that this deferral applies specifically to franchises governed by the Illinois Franchise Disclosure Act, as indicated in the Illinois Addendum to the Disclosure Document. Franchisees looking to open an All States M.E.D. franchise in Illinois should be aware of this deferral and ensure that the terms of the Franchise Agreement align with this requirement. This addendum takes precedence over any conflicting terms in the standard Disclosure Document.