Are All County franchise owners required to execute an agreement to be bound by the Franchise Agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached to this disclosure document in Exhibit A is our Franchise Agreement. Each of your owners, at any time during the term of the Franchise Agreement, will execute an agreement in the form that we prescribe (see Appendix C to the Franchise Agreement) undertaking to be bound jointly and severally by all provisions of the Franchise Agreement and any ancillary agreements between you and us that bind you.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, each owner of the franchise, at any point during the Franchise Agreement's term, is required to execute an agreement. This agreement, in a form prescribed by All County (see Appendix C of the Franchise Agreement), ensures that each owner is jointly and severally bound by all provisions of the Franchise Agreement and any related agreements between the franchisee and All County that are binding on the franchisee. This requirement ensures that all owners are legally responsible for upholding the terms of the franchise agreement.
This clause is a standard practice in franchising to ensure that all individuals with ownership stakes are committed to the brand's standards and legal obligations. By signing this agreement, each owner acknowledges their responsibilities and liabilities under the Franchise Agreement. This protects All County by ensuring recourse against all owners, not just the primary franchisee, in case of breaches or non-compliance.
Prospective franchisees should carefully review Appendix C of the Franchise Agreement to understand the exact nature of the agreement they and their co-owners will be required to sign. They should also seek legal counsel to fully understand the implications of being jointly and severally bound by the Franchise Agreement, as this could have significant financial and operational consequences.