What activities are prohibited under the covenant not to compete after termination of the All County franchise agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement in accordance with its terms and conditions, including the transfer or assignment of this Agreement or any interest in the Business, you agree that, for a period of thirty-six (36) months commencing on the effective date of termination or expiration neither you nor any of your owners will have any direct or indirect interest as a disclosed or beneficial owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative or agent or in any other capacity in any Competitive Business operating or providing services within your Territory or within 50 miles of any point on the outer perimeter of your Territory. You are prohibited from selling or transferring any of the accounts or clients of the Business to anyone except to another All County® business that has been approved in writing by us or to us or our designees.
- 23.5. Commencement by Order. If it becomes necessary to enforce the Covenant Not to Compete by court order, we will seek to enjoin competition for two years from the date of issuance of the order. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Article will not deprive you of your personal goodwill or ability to earn a living.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, a franchisee is subject to a covenant not to compete. This means that for 36 months following the termination date, the franchisee and their owners are restricted from engaging in certain business activities.
Specifically, the franchisee or their owners cannot have any direct or indirect interest in a Competitive Business. This includes being an owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative, or agent. This restriction applies to any Competitive Business operating or providing services within the franchisee's original territory or within 50 miles of the outer perimeter of that territory. A "Competitive Business" is defined as one that offers real estate property management services or products similar to those offered by All County.
Additionally, the franchisee is prohibited from selling or transferring any of the business's accounts or clients to anyone, except to another All County business that has been approved by All County in writing, or back to All County itself or its designees. If All County seeks a court order to enforce this non-compete agreement, the company will pursue an injunction against competition for two years from the date the court order is issued. The agreement states that the franchisee possesses general skills and abilities and has other opportunities to earn a living, so enforcing these covenants will not deprive them of their personal goodwill or ability to earn a living.