Under what condition is the All States M.E.D. transfer fee waived?
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 standard transfer fee is $15,000. However, this fee is waived if the franchise agreement is transferred to an entity that the franchisee controls. The FDD also notes that the transfer fee amount is subject to applicable state law, implying that the fee may vary depending on the state where the franchise is located.
For a prospective All States M.E.D. franchisee, this means that if they decide to transfer their franchise to a business entity they own and control, they will not have to pay the $15,000 transfer fee. This could be a significant cost saving for franchisees planning to incorporate their business or create a holding company.
It is important to note that the waiver only applies if the transfer is to an entity controlled by the franchisee. Transferring the franchise to an unrelated third party would still incur the $15,000 fee. Franchisees should consult with All States M.E.D. and legal counsel to ensure they meet all requirements for the transfer fee waiver and to understand any state-specific regulations that may apply.