What is the geographic scope of the non-competition covenant after termination or expiration of an All County franchise?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.4. Covenant Not to Compete. 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. This non-compete agreement lasts for 36 months, beginning on the date the franchise terminates or expires.
The geographic scope of this restriction includes the franchisee's designated territory and extends to a 50-mile radius from the outer boundary of that territory. This means a former All County franchisee cannot be involved in a competitive business within their original territory or within that 50-mile buffer zone.
The FDD also specifies that franchisees are prohibited from selling or transferring any business accounts or clients, except to another All County franchise that has been approved by All County in writing, or back to All County itself. If All County has to go to court to enforce the non-compete agreement, they will seek to prevent competition for two years from the date the court issues its order.