What is the All County franchisee's obligation regarding the assignment of their leasehold interest in the location to All County?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.6.2. Leasehold Rights. You agree, at our election, to assign your leasehold interest in the Location to us or, to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the prime lease.
- 23.6.3. Purchase Price. 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.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees may be required to assign their leasehold interest in their business location to All County under specific circumstances. If the franchise agreement terminates, expires, or is terminated by the franchisee without cause, All County has the option to purchase the business, including the leasehold rights to the location. This option is exercisable within 60 days of the termination or expiration date.
If All County chooses to exercise this option, the franchisee must assign their leasehold interest to All County. Alternatively, All County may elect for the franchisee to enter into a sublease for the remainder of the lease term. The sublease would be on the same terms, including renewal options, as the original lease. This ensures All County can continue operating the business at the same location without interruption.
The purchase price for the business will be based on its fair market value, considering reasonable depreciation of assets like equipment, signs, inventory, and supplies. However, the valuation will exclude any value associated with the All County franchise itself, the brand's trademarks, or participation in the All County network. The remaining term of the lease will also be a factor in determining the business's fair market value. All County has the right to exclude assets that are not reasonably necessary for the business's operation or that do not meet All County's standards, and the purchase price will be adjusted accordingly.