When is the insurance reimbursement due to All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance Reimbursement | You must reimburse our costs | 15 days after billing | If you fail to obtain insurance, we may obtain insurance for you and you must reimburse us. FA 15.5. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, if a franchisee fails to obtain the required insurance, All States M.E.D. has the right to obtain insurance on behalf of the franchisee. Should this occur, the franchisee is responsible for reimbursing All States M.E.D. for the costs incurred.
The timing for this reimbursement is explicitly stated in Item 6, under the 'Insurance Reimbursement' fee. The franchisee is required to make this reimbursement payment within 15 days after being billed by All States M.E.D.
This policy highlights the importance of maintaining adequate insurance coverage as a franchisee. Failure to do so not only allows All States M.E.D. to procure insurance on the franchisee's behalf but also obligates the franchisee to a swift reimbursement schedule, potentially impacting their cash flow.