factual

What happens if an All County franchisee makes an unauthorized assignment of the agreement?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 22.2.7. you (or any of your owners) make an unauthorized assignment of this Agreement or of an ownership interest in you or the Business;

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

What This Means (2025 FDD)

According to All County's 2025 Franchise Disclosure Document, making an unauthorized assignment of the franchise agreement or an ownership interest in the franchisee's business constitutes grounds for termination of the franchise agreement. Specifically, if a franchisee or any of their owners makes an unauthorized assignment of the agreement, All County has the right to terminate the agreement.

This means that franchisees must obtain prior written approval from All County before transferring any interest or ownership in their business. This includes not only direct assignments but also events like transferring ownership of stock, partnership interests, mergers, or any transfer of interest in the franchise due to divorce, insolvency, or death. Failing to get this approval will be considered a breach of the agreement.

All County's requirement for approval ensures that any new owner meets their standards and is qualified to operate the franchise. This protects the brand and the interests of other franchisees. The FDD specifies that All County will not unreasonably withhold approval of a prospective franchisee, but the franchisee must still go through the proper channels and seek formal consent. This is a fairly standard clause in franchise agreements, designed to maintain brand consistency and protect the franchise system's integrity.

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.