Can All States M.E.D. transfer the Franchise Agreement in whole or in part?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement and all rights and duties hereunder are fully transferable in whole or in part by Franchisor and such rights will inure to the benefit of any person or entity to whom transferred; provided, however, that with respect to any assignment resulting in the subsequent performance by the assignee of the functions of Franchisor, the assignee shall assume the obligations of Franchisor hereunder and
Franchisor shall thereafter have no liability for the performance of any obligations contained in this Agreement.
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, All States M.E.D. Franchising, LLC has the right to transfer the Franchise Agreement, either in its entirety or partially. This transferability extends to all rights and responsibilities outlined in the agreement. The rights from such a transfer will benefit any individual or entity to whom the agreement is transferred.
However, if the transfer results in an assignee taking over the franchisor's functions, that assignee must assume all of All States M.E.D.'s obligations detailed in the agreement. Once the assignee assumes these obligations, All States M.E.D. Franchising, LLC is no longer liable for fulfilling any of the obligations specified in the Franchise Agreement.
For a prospective franchisee, this clause means that the original franchisor, All States M.E.D., can sell the franchise network to another company. While the new company (assignee) must honor the existing franchise agreements, the original All States M.E.D. is released from its obligations. This could lead to changes in the franchise system, and the franchisee would need to adapt to the new management and policies of the assignee. Franchisees should carefully evaluate the reputation and capabilities of any potential future assignees if All States M.E.D. decides to transfer the agreement.