What happens to existing client accounts when my All County franchise agreement is terminated?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
23.2.6. you agree to provide us with current copies of all your customer lists and transfer ownership of all existing clients and accounts to us or our designee; and
23.2.7. you agree to furnish us, within thirty (30) days after the Notification Date, with evidence satisfactory to us of your compliance with the foregoing obligations.
23.3. Confidential Information. You agree that, upon termination, for any reason, or expiration of this Agreement, you will immediately cease to use any of our confidential information in any business or otherwise and return to us all copies of the Operations Manual and any other confidential materials, including, without limitation, computer software and any mechanisms (electronic key) used to access the software, that we have allowed you to use.
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.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if your franchise agreement is terminated, you must provide All County with current copies of all your customer lists and transfer ownership of all existing clients and accounts to All County or its designee. You are required to furnish All County with evidence of your compliance with these obligations within thirty days after the notification date of termination.
This means that upon termination of your All County franchise, you lose ownership of all your client accounts. All County takes control of those accounts, and you must provide them with the necessary information to facilitate the transfer. This is a significant consideration for potential franchisees, as the client base you build during the term of your agreement becomes the property of All County upon termination.
Additionally, the FDD states that 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 All County, or to All County or its designees. This restriction further emphasizes All County's control over the client relationships and prevents you from independently monetizing your client base outside of the All County system, even during the term of the agreement. This is a fairly standard practice in franchising, as it protects the brand's customer relationships.
Furthermore, upon termination, you must immediately cease using any of All County's confidential information and return all copies of the Operations Manual and any other confidential materials, including computer software. You also agree to a covenant not to compete for a period of thirty-six months, preventing you from engaging in a competitive business within your territory or within 50 miles of its perimeter. These stipulations collectively ensure that All County retains control over its business operations and customer relationships, even after a franchise agreement is terminated.