Does the All County covenant not to compete prevent me from being an employee in a sales capacity for a competitive business?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.4. Covenant Not to Compete. Upon the termination or expiration of this Agreement in accordance with its terms and conditions, including the transfer or assignment of this Agreement or any interest in the Business, you agree that, for a period of thirty-six (36) months commencing on the effective date of termination or expiration neither you nor any of your owners will have any direct or indirect interest as a disclosed or beneficial owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative or agent or in any other capacity in any Competitive Business operating or providing services within your Territory or within 50 miles of any point on the outer perimeter of your Territory. You are prohibited from selling or 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.
- 23.5. Commencement by Order. If it becomes necessary to enforce the Covenant Not to Compete by court order, we will seek to enjoin competition for two years from the date of issuance of the order. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Article will not deprive you of your personal goodwill or ability to earn a living.
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 restricts your involvement with a competitive business after the termination or expiration of your franchise agreement. Specifically, for a period of 36 months after the agreement ends, you (or your owners) cannot have a direct or indirect interest in a Competitive Business as an owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative, or agent. This restriction applies within your Territory or within 50 miles of its outer perimeter.
This means that after your All County franchise agreement ends, you are prohibited from working for a competing property management business in a sales role within your defined territory or a 50-mile radius of it. The term 'Competitive Business' is defined broadly in Item 16.1 as any business offering real estate property management services or products similar to those offered by All County franchises.
All County also states that if it becomes necessary to enforce the non-compete agreement through a court order, they will seek to prevent competition for two years from the date the order is issued. The franchise agreement emphasizes that franchisees possess general skills and abilities and have other opportunities to earn a living, so enforcing the non-compete will not deprive them of their personal goodwill or ability to earn a living.