When determining the purchase price of the All County business, is the business valued as an independent entity?

According to All County's 2025 Franchise Disclosure Document, the purchase price for the business will be its fair market value, determined in a manner consistent with reasonable depreciation of the business' equipment, signs, inventory, materials, and supplies. The All County business will be valued as an independent business. Its value will not include any value for the franchise or any rights granted by the agreement, the marks, or participation in the network of All County businesses. The length of the remaining term of the lease for the location will also be considered in determining the business' fair market value.

This means that when All County determines the purchase price of the business, it will be valued as if it were an independent entity, without considering the value of the All County franchise system or brand. This valuation approach focuses on the tangible assets and the lease terms of the specific business location.

For a prospective franchisee, this is important because it clarifies how the business will be valued if All County exercises its option to purchase the business upon termination or expiration of the franchise agreement. The franchisee will not be compensated for the brand recognition or the benefits of being part of the All County franchise network, but rather on the fair market value of the physical assets and lease.

All County may exclude cash or its equivalent and any equipment, signs, inventory, materials and supplies that are not reasonably necessary (in function or quality) to the Business' operation or that All County has not approved as meeting standards for All County businesses from the assets purchased, and the purchase price will reflect these exclusions.