What is the minimum initial franchise fee for an All States M.E.D. franchise?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
A. FRANCHISE AGREEMENT
| Type of Expenditure | Method of Payment | When Due | To Whom Payment is to be Made | ||
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise Fee1 | $100,000 | $100,000 | As arranged | Upon signing your Franchise Agreement | To us |
| Traveling and Living | $2,000 | $3,000 | As arranged | As incurred | Third parties |
| Expenses while Training2 | |||||
| Real Property Rent | $3,000 | $8,000 | As arranged | As incurred | To your landlord |
| Deposits and Pre-Paid | |||||
| Expenses3 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the initial franchise fee for a single territory is $100,000. This fee is payable upon signing the Franchise Agreement. The FDD specifies that all fees paid to All States M.E.D. are non-refundable, but whether fees paid to third parties are refundable depends on their individual policies.
For prospective franchisees, this means that $100,000 is the upfront cost to secure the rights to operate an All States M.E.D. franchise in a single territory. It is crucial to understand that this fee is non-refundable, regardless of whether the franchisee proceeds with opening the business. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise and providing initial support.
It's important to note that this initial franchise fee is just one component of the total estimated initial investment, which ranges from $188,500 to $255,500. This total includes other expenses such as travel and living expenses while training, real property rent deposits, leasehold improvements, furniture, equipment, computer hardware and software, office supplies, uniforms, signage, a high-ceiling van with liftgate, grand opening advertising, business licenses and permits, insurance, professional fees, and additional funds for the first three months of operation. Franchisees should carefully review all these estimated costs to understand the full financial commitment required to start an All States M.E.D. franchise.
For those considering an Area Development Agreement, the initial franchise fee is incorporated into the Area Development Fee, which ranges from $200,000 to $300,000 for three to five territories. The Area Development Fee includes the Initial Franchise Fee on the first territory and one-half the Initial Franchise Fee on additional territories, with the remaining half due when entering into Franchise Agreements for those territories.