What representation is the franchisee making by signing the All States M.E.D. document?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee represents that it has been urged to consult with its own advisors with respect to the legal, financial and other aspects of this Agreement, the business franchised hereby and the prospects for that business. Franchisee represents that it has either consulted with such advisors or has deliberately declined to do so.
24.3 True and Accurate Information
Franchisee represents that all information in any and all applications, financial statements, and submissions to Franchisor is true, complete, and accurate in all respects, and Franchisee acknowledges that Franchisor is relying upon the truthfulness, completeness, and accuracy of such information.
24.4 Risk
Franchisee represents that it has conducted an independent investigation of the business contemplated by this Agreement and acknowledges that, like any other business, an investment in an All
States M.E.D. Business involves business risks and that the success of the venture is dependent, among other factors, upon the business abilities and efforts of Franchisee. Franchisor makes no representations or warranties, express or implied, in this Agreement or otherwise, as to the potential success of the business venture contemplated hereby.
24.5 No Guarantee of Success
Franchisee represents and acknowledges that it has not received or relied on any guarantee, express or implied, as to the revenues, profits or likelihood of success of the Franchised Business. Franchisee represents and acknowledges that there have been no representations by Franchisor's officers, directors, employees or agents that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure Document or this Agreement.
24.6 No Violation of Other Agreements
Franchisee represents that its execution of this Agreement will not violate any other agreement or commitment to which Franchisee or any holder of a legal or beneficial interest in Franchisee is a party.
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 makes several representations when signing the franchise agreement. The franchisee confirms they have been urged to seek advice from their own advisors regarding the legal, financial, and other aspects of the agreement and the franchised business, and that they have either consulted with such advisors or have deliberately chosen not to do so. This indicates that All States M.E.D. wants to ensure franchisees are fully informed or have knowingly accepted the risk of not being so.
Additionally, the franchisee represents that all information provided in any applications, financial statements, and other submissions to All States M.E.D. is true, complete, and accurate. The franchisee acknowledges that All States M.E.D. is relying on the truthfulness and accuracy of this information. This is a standard clause to protect All States M.E.D. from fraudulent or misrepresented information provided by the franchisee during the application process.
The franchisee also represents that they have conducted an independent investigation of the business and acknowledge that investing in an All States M.E.D. business involves risks, with success depending on the franchisee's abilities and efforts. All States M.E.D. makes no guarantees about the potential success of the business. Furthermore, the franchisee confirms they have not received or relied on any guarantees regarding revenues, profits, or the likelihood of success, and that there have been no representations by All States M.E.D.'s representatives that are inconsistent with the Franchise Disclosure Document or the agreement. This protects All States M.E.D. from liability if the franchisee's business underperforms.
Finally, the franchisee represents that their execution of the agreement will not violate any other agreement or commitment to which they or any holder of a legal or beneficial interest in the franchisee is a party. This ensures that the franchisee is not entering into an agreement that conflicts with other obligations. These representations collectively demonstrate that All States M.E.D. places the onus on the franchisee to conduct thorough due diligence and to ensure the accuracy of all information provided, while also disclaiming any guarantees of success.