Does All County have to compensate me for soliciting orders inside my territory?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to establish ALL COUNTY® business offices anywhere outside your Territory. Except for conducting grass-roots marketing efforts in your Territory, defined as conducting direct mail campaigns or physically visiting real estate offices or other businesses in your Territory for the purposes of soliciting referrals, we, our affiliates, or other franchisees have the right to conduct radio, television, or other advertising, or service customer accounts inside your Territory. We have the right to sell services and any ancillary products, whether or not using the Marks, inside or outside your Territory through distribution channels other than ALL COUNTY® businesses, including offering real estate advertising and listing services through Internet websites or through published materials that are distributed in your Territory. We do not have to pay you any compensation for soliciting or accepting orders inside your Territory.
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 required to compensate franchisees for soliciting or accepting orders within their territories. The FDD clarifies that while franchisees are granted a specific territory to market their services, All County retains the right to sell services and ancillary products within that territory through various distribution channels. This includes offering real estate advertising and listing services via the internet or published materials.
This policy means that an All County franchisee could face competition from the franchisor itself within their designated territory, without receiving any compensation for those sales. This is a potential risk for franchisees as it could impact their revenue and profitability. It is important to note that while All County can solicit orders in a franchisee's territory, other franchisees are restricted from conducting grass-roots marketing efforts, such as direct mail campaigns or physically visiting real estate offices within another franchisee's territory.
This arrangement is not uncommon in franchising, as franchisors often maintain control over certain aspects of sales and marketing to ensure brand consistency and leverage economies of scale. However, prospective All County franchisees should carefully consider the potential impact of this policy on their business and factor it into their financial projections. It would be prudent to discuss this aspect with existing franchisees to understand their experiences and strategies for competing with the franchisor's direct sales efforts.