What happens if a proposed All County transferee is unwilling to comply with all lawful obligations?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) A provision which permits a franchisor to refuse to permit a transfer of ownership of a franchise, except for good cause. This subdivision does not prevent a franchisor from exercising a right of first refusal to purchase the franchise. Good cause shall include, but is not limited to:
- (iii) The unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a franchisor can refuse a transfer of ownership if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations. This falls under the 'good cause' exception that allows the franchisor to deny a transfer.
For a prospective All County franchisee, this means that if they decide to sell their franchise, the potential buyer must agree to adhere to all the legal and contractual requirements of the franchise agreement. If the buyer is unwilling to do so, All County has the right to block the transfer. This protects All County's interests and ensures that new franchisees are committed to upholding the brand's standards and legal obligations.
This provision is fairly standard in franchising, as franchisors typically want to maintain control over who operates under their brand name. It's important for franchisees to understand that selling their business isn't simply a matter of finding a buyer; the buyer must also meet All County's criteria and be willing to fully comply with the franchise agreement. Franchisees should discuss transfer requirements with All County early in the sale process.