Can All County or other franchisees provide services to national or regional companies that have locations within my All County territory?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
n to operate or franchise businesses under a different trademark that will sell similar services or goods to those of the Franchise Business.
We or our other franchisees may reasonably enter into agreements to provide services to national or regional companies. These agreements may require our affiliate-operated or franchiseeoperated businesses to provide necessary services to all the national or regional company's locations, and some of these locations may be within your Territory. In the case of an agreement under which the customer will pay a fixed amount for services at all locations listed in such agreement, we will reasonably allocate the fixed amount among the businesses performing such services.
Continuation of Your Territory Rights. In order to retain the right to operate the Franchise Business in the Territory you must meet the performance standards in the Franchise Agreement. The configuration of your Territory will not change except by mutual agreement of you and us. By signing our standard Franchise Agreement, you do not receive any options, rights of first refusal or similar rights to acquire additional franchises.
We may approve relocation of your office for the Franchise Business within the Territory after you provide us with all required information concerning the proposed site to which you want to relocate. Our approval of the relocation of your office will be based primarily on lease terms, suitability of the location for activities of the business, zoning, parking, and general neighborhood.
Source: Item 12 — Territory (FDD pages 26–28)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County or its other franchisees have the ability to enter into agreements to provide services to national or regional companies, even if some of those company locations are within your All County territory. If such an agreement exists where the customer pays a fixed amount for services at all locations, All County will reasonably allocate that fixed amount among the All County businesses performing the services. This means that while you may have a designated territory, national or regional accounts can be serviced by All County or other franchisees within your territory.
This arrangement could impact an All County franchisee in a few ways. On one hand, it could lead to a loss of potential revenue if a national or regional company within your territory is serviced by another franchisee or by All County directly. However, it also opens the possibility for you to participate in such agreements and gain revenue from servicing locations of national or regional companies, even those outside of your primary territory. The allocation of fixed payments for services across multiple locations suggests a system designed to distribute revenue fairly among participating franchisees.
It's important to note that your rights to operate within your territory are contingent upon meeting certain performance standards outlined in the Franchise Agreement. Specifically, you must meet the minimum gross revenue requirements. Failing to meet these requirements in two consecutive 365 day periods could lead to termination of the agreement or the territory being rendered non-exclusive. The minimum gross revenue requirements are $150,000 for the second 365 day period and $250,000 for each remaining 365 day period.
Prospective franchisees should carefully consider the implications of these provisions. While the opportunity to participate in national or regional service agreements could be beneficial, it's crucial to understand how these agreements are structured and how revenue is allocated. Additionally, franchisees should be aware of the minimum performance standards and the potential consequences of failing to meet them. Understanding these factors is essential for making an informed decision about investing in an All County franchise.