For All County, is a conviction for a felony a disqualifying factor for franchise registration?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions other than routine litigation incidental to the business that is significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten years immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a felony conviction can be a disqualifying factor for franchise registration. Specifically, this applies to the franchisor, its predecessors, individuals identified in Item 2 of the FDD, or any affiliate offering franchises under All County's principal trademark.
The FDD states that these parties must not have been convicted of a felony or pleaded nolo contendere (no contest) to a felony charge. Additionally, within the ten years before applying for registration, they must not have been convicted of or pleaded nolo contendere to a misdemeanor charge. They also must not have been the subject of a civil action alleging violations of franchise, antifraud, or securities laws; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices.
This provision aims to protect prospective franchisees by ensuring that individuals associated with All County's franchise system meet certain legal and ethical standards. A prior felony conviction, or certain other legal issues, could raise concerns about a person's ability to manage a franchise responsibly and in compliance with the law. Prospective franchisees should carefully review Item 2 of the FDD to understand who is included in this requirement and conduct their own due diligence to assess any potential risks.