What is the range of the Development Fee for 3-5 All States M.E.D. outlets?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Development Program
If you sign an Area Development Agreement ("ADA") and become an area developer, you will pay us the Initial Franchise Fee of $100,000 for your first franchise and a development fee ("Development Fee") based on the number of Businesses to be developed. The number of Businesses required by the Development Schedule will be determined by a number of factors, such as the size of the Development Area, the population of the Development Area, and your financial capacity and expertise in developing businesses. The Development Fee for each Business that you develop will be $50,000. You will be required to sign our then-current Franchise Agreement for each Business. The Development Fee is paid in a lump sum at the time the ADA is signed, is uniform to all developers currently acquiring development rights, is not refundable and will not be credited against any other fees paid to us or our affiliates. The Development Fee for 3-5 outlets is
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, if a franchisee signs an Area Development Agreement (ADA) to become an area developer, they must pay a Development Fee based on the number of businesses to be developed. The Development Fee for each business is $50,000. The number of businesses required by the Development Schedule will depend on factors such as the size and population of the development area, as well as the franchisee's financial capacity and expertise.
For an Area Development Agreement covering 3 to 5 All States M.E.D. outlets, the Development Fee ranges from $200,000 to $300,000. This fee is paid in a lump sum when the ADA is signed.
The Development Fee is uniform for all developers currently acquiring development rights. It is non-refundable and will not be credited against any other fees paid to All States M.E.D. or its affiliates. This means that prospective area developers need to have this capital available upfront and should understand that this fee is separate from other investment costs.