What is the term of the transferred All States M.E.D. franchise to a Controlled Entity?

According to the 2024 All States M.E.D. Franchise Disclosure Document, when a franchise is transferred to a Controlled Entity, the term of the transferred franchise will be the unexpired term of the original agreement. This includes all renewal rights that were part of the original agreement, subject to any conditions that apply to those renewal rights.

For a prospective All States M.E.D. franchisee, this means that if they transfer their franchise to a corporation, LLC, or other legal entity they wholly own, the new entity will operate the franchise for the remainder of the original franchise term. The Controlled Entity will also have the same rights to renew the franchise, provided they meet all the requirements for renewal at that time.

This policy ensures continuity of the franchise agreement while allowing franchisees flexibility in structuring their business for financial planning or tax purposes. However, it's important to note that the Controlled Entity must assume all obligations of the original agreement, and the franchisee must guarantee the entity's obligations to All States M.E.D.