factual

What is the duration of the covenant not to compete after termination or expiration of the All County Franchise Agreement?

All_County Franchise · 2025 FDD

Answer 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 the 2025 All County Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, the franchisee is subject to a covenant not to compete. This covenant restricts the franchisee and their owners from having any direct or indirect interest in a Competitive Business. This restriction applies within the franchisee's Territory or within 50 miles of any point on the outer perimeter of their Territory.

The duration of this non-compete agreement is thirty-six (36) months, beginning on the effective date of the termination or expiration. The franchisee is also prohibited from selling or transferring any of the business's accounts or clients to anyone except to another All County business approved in writing by All County or to All County or its designees.

Additionally, if All County seeks a court order to enforce the Covenant Not to Compete, they will seek to prevent competition for two years from the date the court order is issued. The FDD states that All County believes that enforcing these covenants will not deprive the franchisee of their personal goodwill or ability to earn a living, as they possess general skills and abilities and have other opportunities to use them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.