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Can All County choose to sublease the Location instead of assigning the leasehold interest when purchasing my All County business?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 23.6.2. Leasehold Rights. You agree, at our election, to assign your leasehold interest in the Location to us or, to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the prime lease.

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 upon termination or expiration of the franchise agreement, they have the option to either take an assignment of your lease or enter into a sublease. Specifically, All County can elect to have you assign your leasehold interest in the location to them, or they can choose to enter into a sublease for the remainder of the lease term. The sublease would be on the same terms and conditions as the original lease, including any renewal options.

This means that as an All County franchisee, you may be required to either assign your lease to All County or sublease the premises to them if they exercise their purchase option. The decision rests with All County, not with you. This is a fairly standard clause in franchise agreements to ensure a smooth transition if the franchisor takes over the business.

It is important to understand that the purchase price for your All County business will consider the remaining term of the lease for the location when determining its fair market value. This could impact the overall value of your business when All County decides whether to purchase it. You should consult with a legal professional to fully understand the implications of this clause and how it might affect the sale of your franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.