Where in the All County Franchise Agreement will all of the franchisee's owners and their interests be described?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
20.3. Assignments. An assignment, transfer, sale, gift or other disposition includes the following events:
- 20.3.1. transfer of ownership of capital stock, partnership interest, or other equity interest in you;
20.3.2. merger or consolidation or issuance of additional securities or interests representing an ownership interest in you;
20.3.3. any issuance or sale of your stock or any security convertible to your stock to any person or entity other than an existing owner;
20.3.4. transfer of an interest in you, this Agreement or the Business in a divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of law;
20.3.5. transfer of an interest in you, this Agreement or the Business, in the event of your death or the death of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession;
20.3.6. pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Business or your transfer, surrender or loss of possession, control or management of the Business; or
20.3.7. 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.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
Based on All County's 2025 Franchise Disclosure Document, the franchise agreement addresses the franchisee's owners and their interests primarily within the context of transfer and assignment of the franchise. Specifically, Section 20.3 outlines various scenarios that constitute an assignment, transfer, sale, or disposition of the franchise, including changes in ownership. This section covers events such as the transfer of capital stock, partnership interests, or other equity interests, as well as mergers, consolidations, and the issuance of additional securities. These stipulations ensure that All County maintains control over who operates its franchises and that any changes in ownership are subject to their approval.
Additionally, the franchise agreement stipulates that franchisees and their owners must not engage in any competitive businesses during the term of the agreement. This restriction extends to the owners' spouses, children, and other first-degree relatives. The agreement prohibits having any direct or indirect interest in a competitive business, performing services for a competitive business, or recruiting employees from All County or other All County franchises. These clauses are designed to protect All County's business model and prevent franchisees from using their knowledge and resources to benefit competing ventures.
Furthermore, the agreement addresses transfers of the franchise in specific situations such as divorce, insolvency, or death. It also covers the pledge of the agreement or ownership interests as security and the transfer of accounts or clients. These provisions ensure that All County has the right to approve any changes in ownership or control of the franchise, even in unforeseen circumstances. The franchisor aims to maintain the integrity and consistency of the All County brand by carefully regulating who can own and operate a franchise.
While the FDD excerpts discuss various scenarios involving ownership and control, it does not explicitly state a section where ALL owners and their specific interests are comprehensively listed. A prospective franchisee should ask All County for clarification on where this information is formally documented and how it is maintained throughout the franchise term.