How much is the transfer fee for an All States M.E.D. franchise?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
apacities), with respect to any representations regarding the Franchise or the business conducted pursuant thereto or any other matter that may have been made to the transferee by Franchisee;
- (g) Franchisee has provided Franchisor with a complete copy of all contracts and agreements and related documentation between Franchisee and the prospective transferee relating to the intended sale or transfer of the Franchise;
- (h) Franchisee, or the transferee, has paid to Franchisor, before the transaction is completed, a transfer fee in the amount of $15,000;
- (i) the transferee, or all holders of a legal or beneficial interest in the transferee, has agreed to be personally bound jointly and severally by all provisions of this Agreement for the remainder of its term by executing a personal guaranty in such form as prepared by Franchisor;
- (j) the transferee has obtained all necessary consents and approvals by third parties and all applicable federal, state, and local laws, rules, ordinances, and requirements applicable to the transfer have been complied with or satisfied;
- (k) Franchisee has, and if Franchisee is an entity, all of the holders of a legal and beneficial interest in Franchisee have executed and delivered to Franchisor a nondisclosure and non-competit
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, a franchisee must pay a transfer fee of $15,000 to All States M.E.D. before completing the transfer of the franchise.
In addition to the transfer fee, the transferee (the person or entity buying the franchise) must agree to be personally bound by all provisions of the Franchise Agreement for the remainder of its term. This is done by executing a personal guaranty. The transferee must also obtain all necessary consents and approvals from third parties and comply with all applicable federal, state, and local laws.
The franchisee (the seller) and all holders of legal or beneficial interest in the franchisee must execute and deliver to All States M.E.D. a nondisclosure and non-competition agreement. Finally, the transferee must complete a training program similar to the initial training before managing the day-to-day operations of the All States M.E.D. franchise business.
These conditions ensure that All States M.E.D. maintains control over who operates its franchises and that the new operator is properly trained and legally bound to the franchise agreement. The transfer fee likely covers All States M.E.D.'s administrative costs and efforts in approving the transfer and ensuring the new franchisee meets their standards.