What happens to the All County franchisee's licenses and permits at closing?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
23.6.7.2. all licenses and permits of the Business which may be assigned or transferred; and
23.6.7.3. the leasehold interest in the Location and improvements thereon.
23.6.8. Escrow. If you cannot deliver clear title to all of the purchased assets, or if there are other unresolved issues, the closing of the sale will, at our election, be accomplished through an escrow arrangement with an independent escrow agent selected by us.
23.6.9. Releases. You and your owners agree to execute general releases, in form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, agents, successors and assigns.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, when the business is sold, all licenses and permits of the business that can be assigned or transferred must be handed over. This means that if a franchisee decides to sell their All County franchise, they are obligated to transfer any relevant licenses and permits to the new owner, assuming these items are transferable.
In addition to licenses and permits, the franchisee must also transfer the leasehold interest in the location and any improvements made to it. This ensures that the buyer receives not only the operational rights but also the physical location and any associated benefits.
However, if there are issues with delivering a clear title to all purchased assets or other unresolved problems, All County has the option to manage the closing of the sale through an escrow arrangement. This involves using an independent escrow agent selected by All County to ensure a smooth and secure transfer of assets and funds. Furthermore, both the franchisee and their owners are required to sign general releases, which absolves All County and its affiliates from any claims related to the franchise agreement.