Where in the All County Franchise Agreement can I find details regarding 'Performance Requirements'?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
4. PERFORMANCE REQUIREMENTS.
- 4.1. Performance Standards. You agree that you will at all times faithfully, honestly and diligently perform your obligations hereunder, continuously exert your best efforts to promote and enhance the Business and not engage in any other business or activity that conflicts with your obligations to operate the Business in compliance with this Agreement.
- 4.2. Days of Operation. You acknowledge and agree that, as required by our Methods of Operation, the Business must operate the entire calendar year, unless otherwise approved in writing by us, and must be managed at all times by your Managing Owner or an owner or employee approved in writing by us.
- 4.3. Minimum Gross Revenue Requirements. You must attain or exceed each minimum requirement (the "Requirement") for Gross Revenue identified below for each respective specified period. Upon your first (1st) failure to attain the required Requirement, you may cure the failure by paying the Royalty Fee and Advertising Fund contribution and by making the local advertising expenditure required under this Agreement, all calculated with reference to the difference between the actual Gross Revenue of the Business for the specified period and the amount of the Requirement for that period. Upon your second (2nd) failure to attain the specified Requirement, then you shall be deemed to be in default under this Agreement and we may, in our sole business judgment, terminate this Agreement and all rights granted in this Agreement, with such termination effective immediately upon notice to you but without prior opportunity to cure the default. Otherwise we may elect to render all or any portion of the Territory as non-exclusive.
- 4.3.1. Minimum Gross Revenue Requirements. You acknowledge and agree that you must attain or exceed the following minimum performance Requirements for total Gross Revenue for
the Business during the specified 365 days periods during the Term of the Agreement, as measured from the Effective Date of the Agreement, or we may render all or any portion of your protected Territory as non-exclusive and we may consider you in breach of the Franchise Agreement.
No minimum total Gross Revenue Requirement for the initial 365 days period during the Term of the Franchise Agreement.
$150,000 minimum total Gross Revenue Requirement for the next consecutive second 365 days period during the Term of the Franchise Agreement.
$250,000 minimum total Gross Revenue Requirement for each consecutive 365 days period during the remaining Term of the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, details about performance requirements can be found in Section 4 of Item 23, which is titled 'Receipts'. This section outlines the standards a franchisee must meet to remain in good standing with All County.
Specifically, Section 4.1 states that franchisees must faithfully, honestly, and diligently perform their obligations, continuously exert their best efforts to promote the business, and avoid any conflicting business activities. Section 4.2 requires the business to operate throughout the entire calendar year, unless All County provides written approval otherwise, and be managed by the Managing Owner or an approved owner or employee.
Section 4.3 details the 'Minimum Gross Revenue Requirements'. There is no minimum gross revenue required during the initial 365 days. However, a $150,000 minimum is required for the subsequent 365-day period, and $250,000 for each 365-day period thereafter. Failure to meet these requirements can lead to a default under the agreement, potentially resulting in termination or the territory being rendered non-exclusive, although a franchisee has an opportunity to 'cure' the first failure.