Will an All County franchisee receive compensation for goodwill at the termination of the Franchise Agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The purchase price for the Business will be its fair market value, determined in a manner consistent with reasonable depreciation of the Business' equipment, signs, inventory, materials and supplies, provided that the Business will be valued as an independent business and its value will not include any value for the Franchise or any rights granted by this Agreement; the Marks; or participation in the network of ALL COUNTY® businesses. The length of the remaining term of the lease for the Location will also be considered in determining the Business' fair market value.
We may exclude cash or its equivalent and any equipment, signs, inventory, materials and supplies that are not reasonably necessary (in function or quality) to the Business' operation or that we have not approved as meeting standards for ALL COUNTY® businesses from the assets purchased, and the purchase price will reflect these exclusions.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the purchase price for the business upon termination or expiration of the agreement will be its fair market value. This fair market value will be determined in a manner consistent with reasonable depreciation of the business's equipment, signs, inventory, materials, and supplies.
However, the valuation of the All County business will be as an independent entity, explicitly excluding any value associated with the franchise itself, the rights granted by the Franchise Agreement, the All County Marks, or participation in the All County network. The length of the remaining term of the lease for the location will also be considered when determining the business's fair market value.
Furthermore, All County may exclude cash or its equivalent, along with any equipment, signs, inventory, materials, and supplies that are not reasonably necessary for the business's operation or that do not meet All County's standards. The purchase price will be adjusted to reflect these exclusions. This indicates that the franchisee will not be compensated for goodwill, as the valuation specifically excludes the value of the franchise, brand, and network participation.