Is All States M.E.D. liable for advice given to the franchisee?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor shall be available to render advice, discuss problems, and offer general guidance to Franchisee by telephone and/or electronic correspondence, with respect to planning and operating the Franchised Business. Franchisor shall not charge for this service. Franchisor's advice or guidance to Franchisee relative to prices for products and services that, in Franchisor's judgment, constitutes good business practice is based upon the experience of Franchisor and its franchisees in operating All States M.E.D. businesses and an analysis of costs and prices charged for competitive products and services. Within range, Franchisee shall have the right to change/determine the price to be charged for a particular service by the Franchised Business at the time of sale (if necessary). Notwithstanding, Franchisee acknowledges and agrees that Franchisor shall not be held liable for such advice; any decisions made by Franchisee, whether on its own accord or through suggestion from Franchisor is Franchisee's sole and absolute responsibility.
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, All States M.E.D. will not be held liable for advice given to franchisees. The FDD states that while All States M.E.D. may offer advice and guidance regarding prices for products and services based on their experience and market analysis, the franchisee has the right to determine the prices charged.
Specifically, the franchisee acknowledges that All States M.E.D. will not be held liable for any advice given. The document clarifies that any decisions made by the franchisee, whether independently or based on suggestions from All States M.E.D., are the sole responsibility of the franchisee.
This means that while All States M.E.D. may provide support and recommendations, the franchisee ultimately bears the responsibility for business decisions and their outcomes. It is crucial for prospective franchisees to understand that they cannot hold All States M.E.D. accountable for any losses or damages resulting from following their advice.