What is the condition regarding applicable standards for All County transfer approval?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4. Conditions for Approval of Transfer. If you and all owners are in full compliance with this Agreement, we will approve a transfer that meets all of our applicable requirements and otherwise meets our applicable standards for ALL COUNTY® businessfranchisees.
A transfer of ownership, possession or control of the Business may be made only in conjunction with a transfer of this Agreement.
If the transfer is of this Agreement or a controlling interest in you, or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
20.4.1. Abilities. The transferee and its direct and indirect owners have the moral character, skill, aptitude, attitude, experience, references, credentials, acumen and financial capacity to operate the Business.
20.4.2. Current Accounts. You have paid all Royalties, Ad Fees, amounts owed for purchases from us and all other amounts owed to us or to third party creditors and have submitted all required reports and statements.
20.4.3. Training. The transferee's Managing Owner has agreed to complete training to our satisfaction and does complete training to our satisfaction prior to closing.
20.4.4. Franchise Agreement. The transferee has agreed to be bound by all of the terms and conditions of this Agreement for the remainder of its Term or, at our option, must execute our then current standard form of franchise agreement and related documents used in the state in which your Business is located (which may provide for different royalties, advertising contributions and expenditures, duration and other rights and obligations than those provided in this Agreement).
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if a franchisee and all owners are in full compliance with the Franchise Agreement, All County will approve a transfer that meets all of its applicable requirements and otherwise meets its applicable standards for All County business franchisees. A transfer of ownership can only occur with a transfer of the Franchise Agreement.
To transfer the agreement or a controlling interest, several conditions must be met. The transferee must have the moral character, skills, experience, and financial capacity to operate the business. All royalties, ad fees, and other amounts owed to All County or third-party creditors must be paid, and all required reports submitted. The transferee's Managing Owner must complete training to All County's satisfaction before closing the transfer.
Additionally, the transferee must agree to be bound by the current Franchise Agreement's terms for the remainder of its term or, at All County's option, execute the then-current standard franchise agreement. This new agreement may have different royalties, advertising contributions, duration, and other obligations. Meeting these standards and conditions is crucial for a smooth and approved transfer of an All County franchise.