What standards must a prospective transferee meet to be approved by All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) the prospective transferee has satisfied Franchisor that it meets Franchisor's management, business and financial standards, and otherwise possesses the character and capabilities, including business reputation and credit rating, as Franchisor may require to demonstrate ability to conduct the Franchised Business;
- (e) the transferee and, if Franchisor requires, all persons owning any interest in the transferee, have executed the then-current franchise agreement for new franchisees, which may be substantially different from this Agreement, including different Royalty Fee and other material provisions, and the franchise agreement then executed shall be for the term specified in such agreement;
- (f) the transferee has executed a general release, in a form the same as or similar to the General Release attached as Schedule 1, of any and all claims against Franchisor and its officers, directors, shareholders, managers, members, partners, owners, employees and agents (in their corporate and individual capacities), 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;
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, a prospective transferee must satisfy several standards to be approved by All States M.E.D. First, the transferee must meet All States M.E.D.'s management, business, and financial standards. This includes possessing the character and capabilities, including business reputation and credit rating, that All States M.E.D. requires to demonstrate the ability to conduct the franchised business.
Additionally, the transferee, and any persons owning interest in the transferee if required by All States M.E.D., must execute the then-current franchise agreement for new franchisees. This new agreement may differ substantially from the original agreement, potentially including different royalty fees and other material provisions, and will be for the term specified in that new agreement. The transferee must also execute a general release of any and all claims against All States M.E.D. and its representatives regarding any representations about the franchise or the business.
Finally, the current franchisee must provide All States M.E.D. with a complete copy of all contracts, agreements, and related documentation between the franchisee and the prospective transferee relating to the intended sale or transfer of the franchise. These conditions ensure that All States M.E.D. maintains control over who operates its franchises and that the new operator meets their standards and releases them from potential liabilities.