What is the All County franchisee's obligation regarding licenses and permits of the business at closing?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
23.6.7.2. all licenses and permits of the Business which may be assigned or transferred; and
23.6.7.3. the leasehold interest in the Location and improvements thereon.
23.6.8. Escrow. If you cannot deliver clear title to all of the purchased assets, or if there are other unresolved issues, the closing of the sale will, at our election, be accomplished through an escrow arrangement with an independent escrow agent selected by us.
23.6.9. Releases. You and your owners agree to execute general releases, in form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, agents, successors and assigns.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, when closing the sale of the business, the franchisee must provide all licenses and permits of the business that can be assigned or transferred. Additionally, the franchisee must transfer the leasehold interest in the location and any improvements made to it.
If the franchisee cannot provide a clear title to all purchased assets, or if there are unresolved issues, All County can elect to complete the sale through an escrow arrangement with an independent escrow agent selected by them. The franchisee and their owners must also execute general releases, in a form satisfactory to All County, of any and all claims against All County and its related parties.
These requirements ensure that All County maintains control over the transfer of its franchises and that new owners meet all necessary legal and operational standards. The escrow arrangement provides a safeguard for All County in case of any disputes or title issues during the transfer process. The general release protects All County from potential future claims by the franchisee after the sale.