When is the All States M.E.D. transfer fee due?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $15,000 | Before transfer completed | No charge if Franchise Agreement transferred to an entity you control. The amount of this fee is subject to applicable state law. FA 18.2(h). |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the transfer fee of $15,000 is due before the transfer is completed. This means a franchisee looking to sell or transfer their franchise must pay this fee before the new owner takes over operations.
However, there is an exception to this fee. All States M.E.D. will not charge a transfer fee if the Franchise Agreement is transferred to an entity the franchisee controls. This could include transferring the franchise to a holding company or another business entity owned by the franchisee.
It's important to note that the amount of the transfer fee is subject to applicable state law, meaning it could potentially vary depending on the state in which the franchise operates. Prospective franchisees should also consult the referenced section FA 18.2(h) of the Franchise Agreement for further details and stipulations regarding franchise transfers.