What is the length of each successor franchise term for All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
n-current standards and specifications;
- 4.2.3 Franchisee has satisfied all monetary obligations owed by Franchisee to Franchisor (or any Affiliate), and has timely met these obligations throughout the term of this Agreement;
- 4.2.4 Franchisee is not in default of any provision of this Agreement or any other agreement between Franchisee and Franchisor;
- 4.2.5 Franchisee has given written notice of its intent to operate a successor franchise to Franchisor not less than nine (9) months nor more than twelve (12) months prior to the end of the term of this Agreement;
- 4.2.6 Franchisee has executed Franchisor's then-current form of franchise agreement (or has executed other documents at Franchisor's election that modify this Agreement to reflect the fact that the Franchise Agreement relates to the grant of a successor franchise), which franchise agreement shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement by requiring, among other things, a different percentage Royalty Fee; provided, however, that Franchisee shall not be required to pay the then-current Franchise Fee;
- 4.2.7 Franchisee has complied with Franchisor's then-current qualifications for a new franchisee and has agreed to comply with any training requirements;
- 4.2.8 Franchisee has executed a general release, in a form the same as or similar to the General Release attached as Schedule 1, of any and all claims against Franchisor, any Affiliate and against their officers, directors, shareholders, managers
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee seeking a successor franchise must provide written notice of their intent to operate one to All States M.E.D. between nine and twelve months before the current agreement ends. The franchisee must not be in default of any agreement with All States M.E.D. and must meet the then-current qualifications for new franchisees, including any training requirements.
To obtain a successor franchise, the franchisee must execute All States M.E.D.'s current franchise agreement form, or other documents elected by All States M.E.D. to modify the existing agreement. The terms of the new agreement may differ from the original, potentially including a different royalty fee percentage. However, the franchisee will not be required to pay the then-current franchise fee.
Additionally, the franchisee must execute a general release of all claims against All States M.E.D., its affiliates, and their respective personnel, except where prohibited by law in the state where the franchised business is located. Finally, the franchisee is required to pay a renewal fee of $10,000 to finalize the successor franchise agreement.