What is the trigger for Kevin Harrington to receive 1% equity in All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
eadquartered applies (subject to applicable state law). |
ITEM 18. PUBLIC FIGURES
We have engaged the public figure, Kevin Harrington, previously of the Shark Tank television show, to help promote our franchise. Kevin Harrington receives $12,500 per month for the first three (3) months then $10,000 per month thereafter; 10% commission on any franchise sale; 1% equity for every 4 franchises sold, up to a maximum of 7% equity. Kevin Harrington performs marketing assistance. He does not participate in the management or ope
Source: Item 18 — PUBLIC FIGURES (FDD page 39)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, Kevin Harrington, a public figure previously on the television show Shark Tank, can receive equity in the company based on franchise sales. Specifically, Harrington receives 1% equity for every four All States M.E.D. franchises sold.
This equity compensation is in addition to other payments Harrington receives for his promotional work. He is paid $12,500 per month for the first three months of his engagement, and then $10,000 per month thereafter. He also earns a 10% commission on any franchise sale that he facilitates.
The total equity that Harrington can accumulate is capped at 7%. This means that he can only receive equity for the first 28 franchises sold (7% total equity divided by 1% per 4 franchises = 28 franchises). This arrangement incentivizes Harrington to actively promote and sell All States M.E.D. franchises, as his compensation is directly tied to the number of franchises sold.