Am I responsible for paying all sales and transfer taxes when All County purchases my All County business?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
third appraiser. You and we agree to select our respective appraisers within fifteen (15) days after the date we determine that we are unable to agree on the Business' fair market value, and the two appraisers so chosen are obligated to appoint the third appraiser within fifteen (15) days after the date on whic
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if All County exercises its option to purchase your business, you are responsible for paying all sales and other transfer taxes. Specifically, you must deliver instruments transferring good and merchantable title to the assets purchased, free and clear of all liens and encumbrances (other than those acceptable to All County), with all sales and other transfer taxes paid by you.
This means that as the seller, you will bear the cost of any taxes associated with transferring ownership of the business assets to All County. This is a standard practice in business sales, where the seller is typically responsible for these taxes unless otherwise negotiated.
Prospective All County franchisees should factor this potential tax liability into their financial planning and consult with a tax advisor to understand the specific implications in their jurisdiction. Understanding these costs upfront can help avoid surprises during the sale of the business.