Can All County freely transfer its rights and obligations under the franchise agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
| SECTION IN | ||
|---|---|---|
| FRANCHISE | ||
| PROVISION | AGREEMENT | SUMMARY |
| j. Assignment of contract by franchisor | 20.1 | Fully transferable by us. However, no assignment will be made except to an assignee who, in good faith and judgment of the franchisor, is willing and financially able to assume the franchisor’s obligations under the Franchise Agreement. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 31–34)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County can freely transfer its rights and obligations under the franchise agreement. Specifically, the FDD states that the contract is fully transferable by All County. However, any assignment will only be made to an assignee who, in All County's good faith and judgment, is willing and financially able to assume All County's obligations under the Franchise Agreement.
This clause means that a prospective All County franchisee should be aware that the company could be sold to a new owner. While the new owner must be willing and able to fulfill the obligations of the franchise agreement, there is no guarantee that the new owner will operate the franchise system in the same way as the current owner.
It is common for franchise agreements to contain clauses allowing the franchisor to transfer their rights and obligations. This provides flexibility for the franchisor to sell the company or restructure their business. However, it is important for franchisees to understand that a change in ownership could impact the franchise system.