What authority must the Managing Owner of an All County franchise have?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that your owners and you will grant to one individual (the "Managing Owner"), the authority to legally bind you in any dealings with us, or our affiliates, and to direct any action necessary to ensure compliance with this Agreement and any other agreements relating to the Business.
The Managing Owner, at all times during the Term of the Agreement, shall maintain management control of the Business, or shall have like authority, ownership, managerial control and voting power in any limited liability company, partnership, or other form of entity, unless otherwise agreed upon in writing by us.
You will notify us thirty (30) days in advance of any change in the identity of the Managing Owner.
Where such change results from the death or incapacity of the Managing Owner, you shall immediately notify us of such death or incapacity, and you will appoint a new Managing Owner within sixty (60) days after such death or incapacity.
We reserve the right to review and disapprove of any newly appointed Managing Owner within ten (10) days of notice.
We reserve the right to review and approve the authority of the Managing Owner with respect to your Articles of Organization, LLC Operating Agreement, Partnership Agreement, Shareholders Agreement, or similar documents.
Neither you nor your owners will, directly or indirectly, take any action to avoid or restrict the authority requirement for the Managing Owner.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Managing Owner must have the authority to legally bind the franchisee in dealings with All County or its affiliates and to direct any action necessary to ensure compliance with the Franchise Agreement and any other agreements related to the business. The Managing Owner must maintain management control of the business, or have similar authority, ownership, managerial control, and voting power in any limited liability company, partnership, or other form of entity, unless otherwise agreed upon in writing by All County.
This requirement ensures that All County has a single point of contact with the authority to make decisions and ensure compliance. It streamlines communication and accountability between the franchisee and franchisor. The franchisee must notify All County 30 days in advance of any change in the identity of the Managing Owner. If the change results from death or incapacity, the franchisee must notify All County immediately and appoint a new Managing Owner within 60 days. All County reserves the right to review and disapprove any newly appointed Managing Owner within 10 days of notice and to review and approve the authority of the Managing Owner with respect to the franchisee's organizational documents.
This provision is fairly standard in franchising, as franchisors typically want a clear line of authority and accountability within each franchise unit. Prospective franchisees should carefully consider who will be designated as the Managing Owner and ensure that this individual has the necessary skills and authority to manage the business effectively and maintain a positive working relationship with All County. The franchisee and its owners cannot take any action to avoid or restrict the authority requirement for the Managing Owner.