Can an All County franchisee engage in other business activities that conflict with their obligations?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
16. EXCLUSIVE RELATIONSHIP.
- 16.1. Exclusive Dealings. We have granted the Franchise to you in consideration of and reliance upon your agreement to deal exclusively with us and not to be involved with a Competitive Business. **"**Competitive Business" means any business that offers real estate property management services or products or other services that are the same or similar to those offered by ALL COUNTY® businesses, or any business that offers franchises or licenses to others to operate any business that offers real estate property management services or products or other services that are the same or similar to those offered by ALL COUNTY® businesses. You agree that during the Term of this Agreement neither you nor any of your owners including any of your or your owners' spouses, children or other first degree relatives by blood or marriage will not engage in any of the following:
- 16.1.1. Interest or Involvement. You will not have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, wherever located.
- 16.1.2. Performance. You will not perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business, wherever located. You are prohibited from selling or transferring any of the accounts or clients of the Business to anyone except to us or to one of our designees or to another ALL COUNTY® business that has been approved in writing by us.
- 16.1.3. Recruiting. You will not recruit or hire any person who is our employee or the employee of any other ALL COUNTY® business without obtaining the prior written permission of that person's employer.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees are restricted from engaging in any competitive business during the term of their agreement. The agreement specifies that franchisees cannot have any direct or indirect interest in a Competitive Business, regardless of its location. A "Competitive Business" is defined as any business offering real estate property management services or products similar to those offered by All County, including businesses that franchise or license others to do the same.
This restriction extends to the franchisee, their owners, and their immediate family members (spouses, children, or first-degree relatives by blood or marriage). Franchisees are also prohibited from performing services for a Competitive Business in any capacity, including as a director, officer, manager, employee, consultant, representative, or agent. Additionally, franchisees cannot recruit or hire employees of All County or other All County franchisees without prior written permission.
This exclusive relationship is a key consideration for prospective franchisees. It ensures that the franchisee's full attention and resources are dedicated to the success of their All County business. It also protects All County's brand and market position by preventing franchisees from using their knowledge and resources gained from the franchise to benefit a competing business. Franchisees should carefully consider this restriction and ensure they are willing to commit exclusively to the All County business before entering into the franchise agreement.
In practical terms, this means an All County franchisee (or their close family) cannot own a competing property management company, work for one, or even consult with one while they are operating their All County franchise. This is a fairly standard clause in franchise agreements to protect the brand and prevent conflicts of interest.