What agreement regarding restrictions must be executed in favor of All County during a transfer?

According to All County's 2025 Franchise Disclosure Document, as a condition of transferring ownership, both the franchisee and any transferring owners must execute an agreement in favor of All County. This agreement ensures that, starting from the effective date of the transfer, they will be bound by the restrictions outlined in the franchise agreement. These restrictions specifically relate to the use of All County's Marks (Article 14), the handling of Confidential Information (Article 15), and adherence to a Covenant not to Compete (Article 23.4).

This requirement protects All County's brand and proprietary information by preventing former franchisees from leveraging their knowledge and experience to compete against the franchise system after they have sold their business. The non-compete agreement, in particular, is a standard tool used in franchising to maintain the integrity of the brand and prevent unfair competition.

For a prospective All County franchisee, this means that when they decide to sell their franchise, they and their transferring owners will need to sign an agreement that restricts their future activities in ways that could harm All County. This could limit their ability to start a competing business or work for a competitor in the same geographic area for a certain period. Franchisees should carefully review Articles 14, 15, and 23.4 of the franchise agreement to fully understand the scope of these restrictions before signing the agreement.