Under what condition can All States M.E.D. permission to open be based?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
You desire to develop and operate several franchised locations and we, in reliance on your representations, have approved your franchise application to do so in accordance with this Agreement.
In consideration of the foregoing and the mutual covenants and consideration below, you and we agree as follows:
1. GRANT OF DEVELOPMENT RIGHTS
We grant to you, under the terms and conditions of this Agreement, the right to develop and operate NUMBER (#) of franchised locations (each a "Location", and collectively, the "Locations") within the territory described on Appendix A ("Development Territory").
2. DEVELOPMENT FEE
You must pay a Development Fee as described below:
As consideration for the rights granted in this Agreement, you must pay us the Initial Franchise Fee stated in the Franchise Agreement at the time you sign this Agreement for the first territory to be developed under this Agreement and one-half of the Initial Franchise Fee for each subsequent Location to be developed under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Area Development Agreement, All States M.E.D. has approved a franchise application based on the developer's representations. This approval allows the developer to establish and manage multiple franchised locations.
Specifically, All States M.E.D. grants the developer the right to develop and operate a specified number of franchised locations within a defined territory, as detailed in Appendix A of the agreement. This grant is contingent upon the terms and conditions outlined in the Area Development Agreement.
In return for these development rights, the developer is obligated to pay All States M.E.D. a Development Fee. This fee includes the full Initial Franchise Fee for the first territory developed under the agreement, paid upon signing the agreement. Additionally, the developer must pay one-half of the Initial Franchise Fee for each subsequent location to be developed. This financial commitment underscores the developer's responsibility and investment in expanding the All States M.E.D. brand within their designated territory.