What is the reference to the All States M.E.D. ADA in the table?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Miami Lakes, FL 2022 | | |---|---| | Gross Revenue | $832,521 | | Less Expense Adjustments that would be incurred | | | if this were a franchised outlet: | | | Royalties (8%) | ($66,602) |
| h. "Cause" Defined – Non Curable Defaults | FA: Section 16.2.1 ADA: Section 4 | We have the right to terminate the Franchise Agreement without giving you an opportunity to cure if you: fail to timely establish, equip and begin operations of the franchised business; fail to satisfactorily complete training; fail to maintain all required professional licenses, permits and certifications for more than 5 business days; made a material misrepresentation or omission in the application for the franchise; are convicted of or plead no contest to a felony or other crime or offense likely to affect the reputation of either party or the Franchised Business; after notice to cure, fail to refrain from activities, behavior or conduct likely to adversely affect either party or the Franchised Business; use the Operations Manual, trade secrets or other confidential information in an unauthorized manner; if required, fail to have your owners, officers, directors, managers, other executives, employees and professional staff, and other individuals |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–39)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the table references the Americans with Disabilities Act (ADA) in the context of franchise agreement termination. Specifically, All States M.E.D. has the right to terminate the franchise agreement without an opportunity for the franchisee to cure the default under certain conditions.
The table indicates that one of the non-curable defaults relates to failing to comply with applicable law after notice. However, All States M.E.D. specifies that it cannot terminate franchise agreements already in place solely for a breach of the ADA.
This provision protects existing All States M.E.D. franchisees from immediate termination based only on ADA violations. However, franchisees must still comply with all applicable laws, including the ADA, to avoid other potential grounds for termination. Prospective franchisees should carefully review Section 4 of the Franchise Agreement, as referenced in the table, to fully understand their obligations and the potential consequences of non-compliance.