Does the All County franchise agreement require a renewal provision?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) A provision that permits the franchisor to refuse to renew a franchise on terms generally available to other franchisees of the same class or type or under similar circumstances. This section does not require a renewal provision.
Section 20 of the Illinois Franchise Disclosure Act sets forth the conditions of non-renewal of a franchise agreement, and the compensation requirements thereunder.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the franchise agreement does not necessarily require a renewal provision. However, Illinois law impacts franchise renewals for All County franchisees in that state. Specifically, Section 20 of the Illinois Franchise Disclosure Act outlines the conditions of non-renewal of a franchise agreement, including compensation requirements. This means that while All County isn't obligated to offer a renewal, if they choose not to renew an Illinois franchise, they must adhere to Illinois law regarding compensation.
In general, the FDD states that a franchisor cannot refuse to renew a franchise on terms not generally available to other franchisees of the same class or type under similar circumstances. However, the document explicitly clarifies that this statement does not mandate a renewal provision in the All County franchise agreement.
For prospective franchisees, this means that renewal is not guaranteed. Franchisees should carefully consider the initial term of the agreement and the conditions under which All County might choose not to renew. Franchisees in Illinois have some protection regarding compensation if All County chooses not to renew, but this does not guarantee renewal itself. It would be prudent for a potential franchisee to discuss renewal terms and conditions with All County during their due diligence process to fully understand their options and potential outcomes at the end of the initial franchise term.