When is the management fee 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 |
|---|---|---|---|
| Management Fee | $250 per person per day (plus other costs and expenses) | As incurred | Due when we (or a third party) manage your outlet after your managing owner’s death or disability, or after your default or abandonment. FA 16.5, 18.6. |
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, the management fee is due as incurred. This fee amounts to $250 per person per day, in addition to other costs and expenses. The management fee is charged when All States M.E.D. or a third party manages the outlet.
This situation arises specifically after the managing owner's death or disability, or in the event of the franchisee's default or abandonment of the business. The "as incurred" due date means that All States M.E.D. will bill the franchisee (or their estate) for these management services as they are provided.
For a prospective All States M.E.D. franchisee, this means that in the unfortunate event they are unable to manage their franchise due to death, disability, default or abandonment, they (or their estate) will be responsible for covering the costs of management. This includes a daily per-person fee plus any additional costs incurred to keep the franchise operational. It is important to consider this potential financial burden and have plans in place to address such scenarios.