Does All County have to compensate me for soliciting customer accounts from within my territory?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not have to pay you any compensation for soliciting or accepting customer accounts from within your Territory.
Neither we nor our affiliate operate or plan to operate or franchise businesses under a different trademark that will sell similar services or goods to those of the Franchise Business.
We or our other franchisees may reasonably enter into agreements to provide services to national or regional companies. These agreements may require our affiliate-operated or franchiseeoperated businesses to provide necessary services to all the national or regional company's locations, and some of these locations may be within your Territory. In the case of an agreement under which the customer will pay a fixed amount for services at all locations listed in such agreement, we will reasonably allocate the fixed amount among the businesses performing such services.
Source: Item 12 — Territory (FDD pages 26–28)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County is not obligated to compensate franchisees for soliciting or accepting customer accounts from within their designated territory. This means that All County retains the right to pursue business within a franchisee's territory without having to share any resulting revenue or profits with the franchisee. This policy is further clarified by stating that All County, its affiliates, or other franchisees can conduct advertising or service customer accounts within a franchisee's territory without compensation. All County also has the right to sell services and ancillary products inside or outside the territory through other distribution channels.
This lack of compensation for in-territory sales by All County could impact a franchisee's potential revenue. While franchisees are granted a specific territory, this provision highlights that the territory is not fully exclusive. All County retains significant rights to operate and generate revenue within that same territory, potentially creating competition for the franchisee.
Prospective franchisees should carefully consider this aspect of the franchise agreement and factor it into their financial projections. Understanding the potential for competition from All County itself within their territory is crucial for assessing the overall profitability and risk associated with the franchise. It is important to note that while All County does not have to compensate franchisees for soliciting or accepting customer accounts from within their territory, in the case of an agreement under which the customer will pay a fixed amount for services at all locations listed in such agreement, All County will reasonably allocate the fixed amount among the businesses performing such services.