When is the initial franchise fee for All States M.E.D. due?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
As consideration for the rights granted in this Agreement, you must pay us the Initial Franchise Fee stated in the Franchise Agreement at the time you sign this Agreement for the first territory to be developed under this Agreement and one-half of the Initial Franchise Fee for each subsequent Location to be developed under this Agreement.
The Development Fee is consideration for this Agreement and not consideration for any Franchise Agreement, is fully earned by us upon execution of this Agreement and is non-refundable. The part of the Initial Franchise Fee that is included in the Development Fee is credited against the Initial Franchise Fee payable upon the signing of each individual Franchise Agreement. The balance of the Initial Franchise Fee for the first Location must be paid at the time of execution of this Agreement, together with the execution by you of the Franchise Agreement for the first Location. The balance of the Initial Franchise Fee for each subsequent Location is due upon entering into a Franchise Agreement for each additional Location.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the initial franchise fee is due at the time you sign the Franchise Agreement. Specifically, if a prospective franchisee is entering into an Area Development Agreement, they must pay the initial franchise fee stated in the Franchise Agreement when they sign the Area Development Agreement for the first territory to be developed.
For each subsequent location to be developed under the Area Development Agreement, the franchisee must pay one-half of the initial franchise fee. The balance of the initial franchise fee for the first location must be paid when the franchisee executes the Franchise Agreement for that first location. For each additional location, the remaining balance of the initial franchise fee is due upon entering into a Franchise Agreement for each additional location.
It is important to note that the development fee, which includes a portion of the initial franchise fee, is earned by All States M.E.D. upon the execution of the Area Development Agreement and is non-refundable. The portion of the initial franchise fee included in the development fee will be credited against the initial franchise fee payable upon signing each individual Franchise Agreement.