Does the definition of 'Competitive Business' for All County include businesses that offer franchises or licenses?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that offer franchises or licenses. Specifically, a 'Competitive Business' is defined as any business offering real estate management services similar to All County, or any business that offers franchises or licenses to others to operate businesses offering similar real estate management services.
This definition has significant implications for All County franchisees. During the term of their Franchise Agreement, franchisees and their immediate family members are prohibited from having any direct or indirect interest in a Competitive Business, wherever it is located. They are also barred from performing services for a Competitive Business in any capacity, including as a director, officer, manager, employee, consultant, representative, or agent.
This broad definition and the restrictions placed on franchisees are designed to protect All County's market position and prevent franchisees from using the knowledge and resources gained through the franchise to benefit a competing business. Prospective franchisees should carefully consider these restrictions and ensure they do not have any existing interests or planned activities that could be construed as involvement with a Competitive Business. It is also important to note that franchisees are prohibited from selling or transferring any of the accounts or clients of the Business to anyone except to All County or to one of their designees or to another All County business that has been approved in writing by them.