What is the condition regarding the remainder of the term of the All County agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event this Agreement is transferred to a third party transferee in accordance with the terms of this Agreement and the remaining Term of this Agreement is two (2) years or less, then you acknowledge that prior to any such transfer you must notify the proposed transferee in writing, with additional written notice to us, that as a required condition of the proposed transfer the transferee must be willing
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to the 2025 All County Franchise Disclosure Document, if a franchisee seeks to transfer their agreement to a third party and the remaining term of the agreement is two years or less, the franchisee must inform the potential transferee in writing that the transferee must agree to certain conditions as part of the transfer. The franchisee must also provide written notice to All County regarding this notification to the transferee.
This condition ensures that any new franchisee taking over an All County franchise with a short remaining term is fully aware of their obligations and the limited time frame they have to operate under the existing agreement. It protects All County by ensuring that transferees are not caught off guard by the short term and potentially misrepresent the franchise, and it also protects the transferee by ensuring they are aware of the limited term.
This requirement is important for prospective franchisees to understand, as it could impact the value and attractiveness of their franchise if they decide to sell it with only a short time remaining on the original agreement. Franchisees should discuss with All County what options might be available at the end of the term, such as renewal or extension, to better understand the long-term potential of the franchise.