What happens if the Managing Owner of an All County franchise dies or becomes incapacitated?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.6. Operation Upon the Death or Disability of the Managing Owner. If, upon the death or permanent disability of the Managing Owner, the Business is not being managed by a manager trained by us, you or such Managing Owner's executor, administrator, conservator, guardian or other personal representative must within a reasonable time, not to exceed thirty (30) days from the date of death or permanent disability of the Managing Owner, appoint a manager to operate the Business, subject to our written approval.
Such manager must successfully complete our required initial training at your expense within thirty (30) days of being appointed to operate the Business.
This manager is not necessarily the transferee of Article 20.4., but an interim manager to keep the Business operational until a transfer can be completed.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if the Managing Owner dies or becomes permanently disabled, and the business isn't being managed by an All County-trained manager, the franchisee (or the Managing Owner's representative) has 30 days to appoint a manager, subject to All County's approval. This manager must complete All County's initial training at the franchisee's expense within 30 days of appointment. This manager serves as an interim solution until a permanent transfer can be arranged.
All County retains the right to review and disapprove of any newly appointed Managing Owner within ten days of notice. Furthermore, All County reserves the right to review and approve the authority of the Managing Owner with respect to the franchisee's Articles of Organization, LLC Operating Agreement, Partnership Agreement, Shareholders Agreement, or similar documents. This ensures that the replacement Managing Owner meets All County's standards and can effectively manage the franchise.
Failure to appoint a manager within 30 days of the Managing Owner's death or disability, or failure of the appointed manager to complete the required training within 30 days, constitutes a breach of the Franchise Agreement. This could lead to termination of the agreement, as outlined in section 22.2.8. Therefore, it is crucial for franchisees to have a succession plan in place and to act swiftly to address any issues related to the Managing Owner's death or disability to maintain compliance with the Franchise Agreement.