What franchise agreement does the transferee of an All County franchise need to sign?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4.4. Franchise Agreement. The transferee has agreed to be bound by all of the terms and conditions of this Agreement for the remainder of its Term or, at our option, must execute our then current standard form of franchise agreement and related documents used in the state in which your Business is located (which may provide for different royalties, advertising contributions and expenditures, duration and other rights and obligations than those provided in this Agreement).
In the event this Agreement is transferred to a third party transferee in accordance with the terms of this Agreement and the remaining Term of this Agreement is two (2) years or less, then you acknowledge that prior to any such transfer you must notify the proposed transferee in writing, with additional written notice to us, that as a required condition of the proposed transfer the transferee must be willing
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a transferee seeking to acquire an existing All County franchise must generally agree to be bound by the terms and conditions of the current franchise agreement for the remainder of its term. However, All County retains the option to require the transferee to execute their then-current standard form of franchise agreement and related documents used in the state where the business is located. This new agreement may include different royalties, advertising contributions, duration, and other rights and obligations than the original agreement.
This requirement ensures that All County can maintain consistent standards and practices across its franchise network. By having transferees sign the most up-to-date agreement, All County can implement new policies, fees, or operational procedures more effectively. The decision to enforce the existing agreement or require a new one rests solely with All County.
For a prospective franchisee, this means that acquiring an existing All County franchise might involve agreeing to different terms than those under which the original franchisee operated. It is crucial for potential transferees to understand that the terms of the franchise can change upon transfer, potentially affecting profitability, operational requirements, and the overall business relationship with All County. The transferee should carefully review the current standard form of franchise agreement to fully understand their obligations and rights.
Furthermore, the FDD specifies that if the remaining term of the existing agreement is two years or less, the transferring franchisee must notify the potential transferee that they may need to sign a new agreement as a condition of the transfer. This disclosure requirement aims to ensure transparency and prevent misunderstandings during the transfer process. A prospective transferee should consult with a franchise attorney to review both the existing franchise agreement and the current standard form to fully understand the implications of the transfer.