What happens if the transferee fails to execute a franchise agreement with All County?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
tion proceeding or otherwise by operation of law;
- 20.3.5. transfer of an interest in you, this Agreement or the Business, in the event of your death or the death of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession;
- 20.3.6. pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Business or your transfer, surrender or loss of possession, control or management of the Business; or
- 20.3.7. transferring any of the accounts or clients of the Business to anyone except to another ALL COUNTY® business that has been approved in writing by us or to us or our designees.
- 20.4. Conditions for Approval of Transfer. If you and all owners are in full compliance with this Agreement, we will approve a transfer that meets all of our applicable requirements and otherwise meets our applicable standards for ALL COUNTY® businessfranchisees. A transfer of ownership, possession or control of the Business may be made only in conjunction with a transfer of this Agreement. If the transfer is of this Agreement or a controlling interest in you, or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
- 20.4.1. Abilities. The transferee and its direct and indirect owners have the moral character, skill, aptitude, attitude, experience, references, credentials, acumen and financial capacity to operate the Business.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
Based on the 2025 All County Franchise Disclosure Document, a transfer of ownership, possession, or control of the business can only occur alongside a transfer of the Franchise Agreement. For a transfer of the agreement or a controlling interest, the transferee must agree to be bound by the existing terms or, at All County's discretion, execute the then-current standard franchise agreement.
According to the FDD, All County's approval of a transfer is conditional on the prospective transferee agreeing to sign the current franchise agreement and meeting the company's qualifying conditions. If the transferee does not agree to these terms, the transfer will not be approved. Without an executed franchise agreement, the transfer cannot proceed, and the original franchisee retains ownership, assuming all other agreements remain in effect.
If a transfer of the All County franchise agreement does not occur, the original franchisee may continue to operate the business under the existing agreement, provided they remain in compliance with its terms. However, they would not be able to sell or transfer the business to the prospective transferee. This ensures that All County maintains control over who operates franchises under its brand and that all franchisees meet its standards and obligations.