Who is responsible for compensating the Designated Manager of the All States M.E.D. Business?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Either the Franchisee or its on-site Designated Manager must devote sufficient efforts to the management of the day-to-day operations of the Franchised Business, but not less than forty (40) hours per week. While you have the right to select any Designated Manager, we retain the right to accept or reject any proposed individual or entity as the Designated Manager. You will be responsible for the compensation to any individual or entity you contract to act as the Designated Manager of the Business. You have the sole legal responsibility for any dispute relating to such individual or entity. We maintain the right to require any approved Designated Manager to attend and satisfactorily complete our initial training program before opening the Business. You must keep us informed at all times of the identity of your Designated Manager. If you must replace the Designated Manager, your replacement Manager must be approved by us within 60 days, such approval not to be unreasonably withheld – we may additionally require such replacement Designated Manager to attend and complete our training program at your expense. If the Franchisee is an entity, its Designated Manager is not required to own an equity interest in the Franchisee.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 31)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the franchisee is responsible for compensating the Designated Manager of the All States M.E.D. business. The franchisee has the right to select the Designated Manager, but All States M.E.D. retains the right to accept or reject the proposed individual or entity.
This means that as a franchisee, you will need to budget for and handle all aspects of the Designated Manager's compensation, including salary, benefits, and any other form of payment. You also have the sole legal responsibility for any disputes relating to the Designated Manager.
All States M.E.D. maintains the right to require any approved Designated Manager to attend and satisfactorily complete their initial training program before the All States M.E.D. business opens. If the franchisee must replace the Designated Manager, the replacement must be approved by All States M.E.D. within 60 days, and the replacement may be required to attend and complete the training program at the franchisee's expense.