What conditions must a proposed transferee meet to be approved by All County?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
ecurity convertible to your stock to any person or entity other than an existing owner;
- 20.3.4. transfer of an interest in you, this Agreement or the Business in a divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of law;
- 20.3.5. transfer of an interest in you, this Agreement or the Business, in the event of your death or the death of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession;
- 20.3.6. pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Business or your transfer, surrender or loss of possession, control or management of the Business; or
- 20.3.7. transferring any of the accounts or clients of the Business to anyone except to another ALL COUNTY® business that has been approved in writing by us or to us or our designees.
- 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.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 31–34)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a franchisee can transfer ownership if they and all owners are in full compliance with the Franchise Agreement. All County will approve a transfer that meets all of their applicable requirements and standards for All County franchisees. The transfer of ownership, possession, or control of the business can only occur with a transfer of the Franchise Agreement.
Prior to or concurrently with the effective date of the transfer, the following conditions must be met: The transferee and its direct and indirect owners must possess the moral character, skill, aptitude, attitude, experience, references, credentials, acumen, and financial capacity to operate the business. The franchisee must have paid all royalties, ad fees, amounts owed for purchases from All County, and all other amounts owed to All County or third-party creditors, and have submitted all required reports and statements. The transferee's Managing Owner must agree to complete training to All County's satisfaction and complete the training before closing.
The transferee must agree to be bound by all the terms and conditions of the existing Franchise Agreement for the remainder of its term. Alternatively, at All County's option, the transferee must execute All County's then-current standard form of franchise agreement and related documents used in the state where the business is located, which may include different royalties, advertising contributions and expenditures, duration, and other rights and obligations than the original agreement. The franchisee must pay All County a transfer fee of $10,000 at the time of the proposed transfer, in addition to All County's reasonable legal fees, administrative costs, and out-of-pocket expenses. The transferee must also agree to pay All County a separate Transferee Administrative Fee of $2,500 for administrative and other expenses related to the transfer.
These conditions ensure that any new franchisee meets All County's standards for operation and financial responsibility. Prospective franchisees should carefully consider these requirements and the associated costs, including transfer and administrative fees, as they can significantly impact the financial aspects of acquiring an existing All County franchise. Additionally, the potential for being required to sign All County's current franchise agreement, which may have different terms than the original agreement, should be carefully evaluated.