Does the All County Franchise Agreement require the franchisee to acknowledge they understand the terms?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
As you know, you and we are entering into a Franchise Agreement for the operation of an ALL COUNTY® franchise. The purpose of this Acknowledgment Addendum is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, and to be certain that you understand the limitations on claims that may be made by you by reason of the offer and sale of the franchise and operation of your business. Please review each of the following questions carefully and provide honest responses to each question. All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of liability incurred under the Maryland Franchise Registration and Disclosure Law.
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- Voluntary Nature of Agreement. The parties acknowledge and agree that they have entered into this Agreement voluntarily and without any coercion. The parties further represent that they have had the opportunity to consult with an attorney of their own choice, that they have read the terms of this Agreement, and that they fully understand and voluntarily accept the terms.
Franchisee hereby acknowledges and agrees that under the terms of the Franchise Agreement, All County Property Management Franchise Corp. ("All County") requires Franchisee to participate in All County's mandatory Reconciliation Assistance Program (the "Program"). The Program shall be administered by All County in compliance with All County's designated Operating Standards concerning the Program.
Franchisee acknowledges and agrees that during the Term of the Franchise Agreement, Franchisee must pay All County designated fees (each a "Reconciliation Assistance Program Fee") for Franchisee's participation in the Reconciliation Assistance Program.
Franchisee hereby acknowledges and agrees that All County shall have full access to and administrator rights in any software or system specified by All County under the Operating Standards of the Program. Franchisee agrees that All County may use any of the data of Franchisee for any business purposes, in its sole business judgment, including but not limited to calculating Royalties, determining and analyzing the financial condition of the Franchised Business, and creating financial performance representations for the All County Franchise Disclosure Document.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees are required to acknowledge and represent that they understand the terms of the Franchise Agreement. Specifically, there is an Acknowledgment Addendum designed to ensure that franchisees understand the limitations on claims they can make regarding the franchise offer and business operation. This addendum includes questions to determine if any unauthorized or untrue statements were made during the franchise sales process.
The FDD also includes clauses where the franchisee acknowledges specific aspects of the agreement, such as participation in the Reconciliation Assistance Program and the associated fees. Franchisees must acknowledge All County's right to access and use their data for business purposes, including calculating royalties and creating financial performance representations. These acknowledgments are part of the contractual obligations and demonstrate the franchisee's understanding and agreement to these terms.
Furthermore, the agreement includes a section addressing the voluntary nature of the agreement, where both parties acknowledge they have entered into the agreement without coercion. They also represent that they had the opportunity to consult with an attorney, have read the terms, and fully understand and voluntarily accept them. This clause reinforces the franchisee's understanding and acceptance of the agreement's terms.
However, the FDD also includes addenda for specific states like California, New York, and Virginia, which contain provisions that may supersede or modify certain terms of the standard agreement to comply with local laws. These state-specific addenda often address issues such as waivers of claims, application of state franchise laws, and disclaimers of reliance on franchisor statements. Franchisees in these states should pay close attention to these addenda to understand how they modify the general terms of the Franchise Agreement.