How must the transferee agree to be personally bound by the All States M.E.D. agreement?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, a transferee, or all holders of a legal or beneficial interest in the transferee, must agree to be personally bound jointly and severally by all provisions of the Franchise Agreement for the remainder of its term. This agreement is formalized through the execution of a personal guaranty in a form prepared by All States M.E.D.

This requirement ensures that the obligations and responsibilities outlined in the Franchise Agreement are not only borne by the business entity (the transferee) but also by the individuals who own or have a significant stake in that entity. By signing a personal guaranty, these individuals commit to being personally liable for the transferee's adherence to the agreement's terms.

The personal guaranty covers all provisions of the agreement, meaning the transferee and its stakeholders are responsible for upholding every aspect of the franchise agreement. This includes, but is not limited to, financial obligations, operational standards, and compliance with All States M.E.D.'s system standards. This provision is designed to protect All States M.E.D. and ensure the consistent operation and quality of its franchises by holding individuals accountable.