What happens if an All County franchisee or their owners are convicted of a felony?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.2.5. you (or any of your owners) are or have been convicted by a trial court of, or plead or have pleaded guilty or no contest to, a felony or any crime involving moral turpitude;
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a franchisee's agreement can be terminated if the franchisee or any of their owners are convicted of a felony or any crime involving moral turpitude. This also applies if they plead guilty or no contest to such a crime. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand's reputation and ensure ethical business practices.
This provision gives All County the right to terminate the franchise agreement if a franchisee or owner is convicted of a felony. This means the franchisee would lose their franchise and the right to operate an All County business. The franchisor does not have to wait for an appeal or other legal process to conclude before terminating the agreement.
For a prospective franchisee, this highlights the importance of maintaining a clean criminal record and ensuring that all owners involved in the franchise do as well. A past or future felony conviction could jeopardize the entire investment in the All County franchise. Franchisees should seek legal counsel to fully understand the implications of this clause and how it might affect them or their ownership structure.