Does the All County covenant not to compete apply to the owners of the franchise?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
hat we prescribe from time to time to prevent unauthorized use or disclosure of confidential information, including, without limitation, restrictions on disclosure to the Business' personnel and others.
- 15.3. Ideas, Concepts, Techniques or Materials. All ideas, concepts, techniques or materials relating to an ALL COUNTY® business, whether or not constituting protected intellectual property, and whether created by or on behalf of you or your owners, will be promptly disclosed to us, deemed to be our sole and exclusive property and part of the System and deemed to be works made for hire for us. You and your owners agree to sign whatever assignment or other documents we may request from time to time to evidence our ownership or to assist us in securing intellectual property rights in such ideas, concepts, techniques or materials.
16. EXCLUSIVE RELATIONSHIP.
- 16.1. Exclusive Dealings. We have granted the Franchise to you in consideration of and reliance upon your agreement to deal exclusively with us and not to be involved with a Competitive Business. **"**Competitive Business" means any business that offers real estate property management services or products or other services that are the same or similar to those offered by ALL COUNTY® businesses, or any business that offers franchises or licenses to others to operate any business that offers real estate property management services or products or other services that are the same or similar to those offered by ALL COUNTY® businesses. You agree that during the Term of this Agreement neither you nor any of your owners including any of your or your owners' spouses, children or other first degree relatives by blood or marriage will not engage in any of the following:
- 16.1.1. Interest or Involvement. You will not have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, wherever located.
- 16.1.2. Performance. You will not perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business, wherever located. You are prohibited from selling or transferring any of the accounts or clients of the Business to anyone except to us or to one of our designees or to another ALL COUNTY® business that has been approved in writing by us.
- 16.1.3. Recruiting. You will not recruit or hire any person who is our employee or the employee of any other ALL COUNTY® business without obtaining the prior written permission of that person's employer.
17. MARKETING.
17.1. Advertising Fund. We may establish an advertising fund ("Advertising Fund") for such advertising, marketing and public relations programs and materials as we deem necessary or appropriate in our sole business judgment. The Advertising Fund is intended to maximize recognition of the Marks and patronage of ALL COUNTY® businesses**.** We will endeavor to utilize the Advertising Fund to develop advertising and marketing materials and programs and to place
advertising that will benefit all ALL COUNTY® businesses. You will be required to contribute to the Advertising Fund as set forth in this Agreement.
- 17.1.1.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the covenant not to compete does apply to the owners of the franchise. During the term of the agreement, neither the franchisee nor any of their owners, including spouses, children, or other first-degree relatives, can have any direct or indirect interest in a Competitive Business, perform services for a Competitive Business, or recruit employees from All County or other All County businesses. A "Competitive Business" is defined as any business offering real estate property management services similar to those offered by All County.
Upon termination or expiration of the Franchise Agreement, the franchisee and their owners are restricted from having any interest in a Competitive Business operating within the franchisee's territory or within 50 miles of its outer perimeter for a period of 36 months. This includes being an owner, investor, partner, director, officer, employee, consultant, representative, or agent in any capacity. The franchisee is also prohibited from selling or transferring any business accounts or clients except to another All County franchise approved in writing by All County or to All County itself.
All County emphasizes that franchisees and their owners possess general skills and abilities and have other opportunities to earn a living. Therefore, All County believes that enforcing these covenants will not deprive them of their personal goodwill or ability to earn a living. If All County has to enforce the covenant not to compete through a court order, they will seek to prevent competition for two years from the date the order is issued.
Prospective franchisees should carefully consider these restrictions and how they might affect their future business activities and those of their immediate family. It is important to fully understand the definition of "Competitive Business" and the geographical limitations of the non-compete agreement before entering into a franchise agreement with All County.