What is the geographic scope of the non-competition covenant after termination or expiration of my All County franchise?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement in accordance with its terms and conditions, including the transfer or assignment of this Agreement or any interest in the Business, you agree that, for a period of thirty-six (36) months commencing on the effective date of termination or expiration neither you nor any of your owners will have any direct or indirect interest as a disclosed or beneficial owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative or agent or in any other capacity in any Competitive Business operating or providing services within your Territory or within 50 miles of any point on the outer perimeter of your Territory. You are prohibited from selling or transferring any of the accounts or clients of the Business to anyone except to another All County® business that has been approved in writing by us or to us or our designees.
- 23.5. Commencement by Order. If it becomes necessary to enforce the Covenant Not to Compete by court order, we will seek to enjoin competition for two years from the date of issuance of the order. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Article will not deprive you of your personal goodwill or ability to earn a living.
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, after the franchise agreement is terminated or expires, a franchisee is restricted from operating a similar business for 36 months. This restriction applies within the franchisee's designated territory and extends to a 50-mile radius from the outer boundary of that territory. This prevents former franchisees from directly competing with All County within a substantial area after their franchise agreement ends.
The non-compete agreement specifically prohibits the franchisee, or any of their owners, from holding any direct or indirect interest in a competitive business. This includes roles such as owner, investor, partner, director, officer, employee in management or sales, consultant, representative, or agent. The restriction covers a wide range of involvements to prevent any form of competitive activity.
Furthermore, the All County franchise agreement restricts a franchisee from selling or transferring any business accounts or clients, except to another All County franchise that has been approved by the franchisor or to the franchisor directly. If All County needs to enforce the non-compete agreement through a court order, they will seek to prevent competition for two years from the date the order is issued. The franchisor believes that enforcing these covenants will not deprive the franchisee of their ability to earn a living, as they possess general skills and abilities applicable to other opportunities.