What is the condition regarding the transferee's agreement to be bound by the All County agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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).
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 All County's 2025 Franchise Disclosure Document, a condition of transfer approval is that the transferee agrees to be bound by the existing franchise agreement's terms and conditions for the remainder of its term. Alternatively, All County has the option to require the transferee to execute the then-current standard franchise agreement and related documents used in the state where the business is located. This new agreement may include different royalties, advertising contributions and expenditures, duration, and other rights and obligations than the original agreement.
This condition ensures that All County maintains control over its franchise system and that the transferee is committed to operating the business according to All County's standards. By requiring the transferee to either assume the existing agreement or sign a new one, All County can ensure consistency and protect its brand. The option for All County to impose a new agreement allows them to update terms and conditions to reflect current business practices and legal requirements.
For a prospective All County franchisee, this means that if they plan to sell their franchise, the potential buyer must be willing to agree to the existing franchise terms or sign a new agreement with potentially different terms. This could affect the attractiveness of the franchise to potential buyers, depending on the terms of the existing agreement and the changes in the new agreement. Franchisees should be aware of this condition and discuss it with All County and any potential buyers during the transfer process.
Furthermore, if the remaining term of the agreement is two years or less, the franchisee must notify the proposed transferee in writing, with additional written notice to All County, that the transferee must be willing to execute All County's then-current standard franchise agreement as a required condition of the proposed transfer. This ensures that All County can implement a new agreement for a complete term of effectiveness, unless otherwise agreed in writing.