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What happens if the All County franchisee has liens or security interests on the assets being purchased?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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.

Source: Item 23 — Receipts (FDD pages 43–157)

What This Means (2025 FDD)

According to All County's 2025 Franchise Disclosure Document, if the franchisee cannot deliver clear title to all of the purchased assets, or if there are other unresolved issues, the closing of the sale will, at All County's election, be accomplished through an escrow arrangement with an independent escrow agent selected by All County.

This means that if a franchisee has liens or other encumbrances on the assets of the All County business being sold back to the franchisor, the sale can still proceed. However, All County will control the process by selecting an escrow agent to manage the funds and ensure that the liens are cleared before the franchisee receives the balance of the purchase price.

This arrangement protects All County by ensuring they receive clear title to the assets they are purchasing. It also provides a mechanism for resolving any outstanding issues that might otherwise prevent the sale from closing. For a prospective franchisee, this highlights the importance of maintaining clear title to all business assets and resolving any potential disputes promptly to avoid complications during a potential sale back to All County.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.