factual

Does the All County franchise agreement specify what constitutes 'unreasonable' withholding of approval?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 25.19. Withhold Approval. Except where this Agreement expressly obligates us reasonably to approve or not unreasonably to withhold our approval of any of your actions or requests, we have the absolute right to refuse any request you make or to withhold our approval of any of your proposed or effected actions that require our approval.

Source: Item 23 — Receipts (FDD pages 43–157)

What This Means (2025 FDD)

According to All County's 2025 Franchise Disclosure Document, the franchise agreement does not define what specifically constitutes 'unreasonable' withholding of approval. However, the agreement does state that All County has the absolute right to refuse any request or withhold approval of any proposed actions that require their approval, except where the agreement expressly obligates them to reasonably approve or not unreasonably withhold approval.

This means that while All County retains significant discretion in approving franchisee actions, there are instances where they are contractually bound to act reasonably. What constitutes 'reasonable' or 'unreasonable' is not defined, which leaves room for interpretation and potential disputes.

A prospective All County franchisee should seek clarification from the franchisor regarding specific examples of actions or requests where approval might be required and what criteria would be used to assess such requests. Understanding the franchisor's expectations and standards for approval can help avoid misunderstandings and potential conflicts during the franchise term. It would be prudent to consult with a legal professional to fully understand the implications of this clause.

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.