What agreement must each owner of an All County franchise execute?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4.4. Franchise Agreement. The transferee has agreed to be bound by all of the terms and conditions of this Agreement for the remainder of its Term or, at our option, must execute our then current standard form of franchise agreement and related documents used in the state in which your Business is located (which may provide for different royalties, advertising contributions and expenditures, duration and other rights and obligations than those provided in this Agreement).
In the event this Agreement is transferred to a third party transferee in accordance with the terms of this Agreement and the remaining Term of this Agreement is two (2) years or less, then you acknowledge that prior to any such transfer you must notify the proposed transferee in writing, with additional written notice to us, that as a required condition of the proposed transfer the transferee must be willing
The Transferee Administrative Fee shall be due from the transferee to us at the same time the transferee executes a franchise agreement with us, or otherwise at the same time the transferee executes any other separate agreement with us making the transfer effective.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, in the event of a transfer of ownership, the transferee must agree to be bound by all the terms and conditions of the existing Franchise Agreement for the remainder of its term. However, All County has the option to require the transferee to execute All County's then-current standard form of franchise agreement and related documents used in the state in which the business is located. This new agreement may include different royalties, advertising contributions and expenditures, duration, and other rights and obligations than those provided in the original agreement.
This means that if a franchisee sells their All County business, the person buying it (the transferee) might have to sign a completely new franchise agreement. This new agreement could have different terms than the original one, such as different royalty fees or advertising requirements. All County has the discretion to decide whether the transferee must sign a new agreement or simply abide by the remaining term of the existing agreement.
For a prospective franchisee, this highlights the importance of understanding that the terms of the franchise agreement can change upon transfer. If planning to sell the franchise in the future, the potential buyer may face different conditions than the original franchisee. This could affect the business's value and the ease of selling it. It is important to note that if the remaining term of the agreement is two years or less, the current franchisee must notify the potential transferee that they may be required to execute a new franchise agreement.
It is also important to note that the transferee must pay All County a separate fee (the "Transferee Administrative Fee") in the amount of Two Thousand Five Hundred Dollars ($2,500) for administrative and other expenses All County incurs in connection with the transfer. The Transferee Administrative Fee shall be due from the transferee to All County at the same time the transferee executes a franchise agreement with All County, or otherwise at the same time the transferee executes any other separate agreement with All County making the transfer effective.