If the All County agreement is transferred to a third party, what happens to the remaining term?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.4.4. Franchise Agreement. The transferee has agreed to be bound by all of the terms and conditions of this Agreement for the remainder of its Term or, at our option, must execute our then current standard form of franchise agreement and related documents used in the state in which your Business is located (which may provide for different royalties, advertising contributions and expenditures, duration and other rights and obligations than those provided in this Agreement).
In the event this Agreement is transferred to a third party transferee in accordance with the terms of this Agreement and the remaining Term of this Agreement is two (2) years or less, then you acknowledge that prior to any such transfer you must notify the proposed transferee in writing, with additional written notice to us, that as a required condition of the proposed transfer the transferee must be willing
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, when transferring the franchise agreement to a third party, the transferee must agree to be bound by all the terms and conditions of the existing agreement for the remainder of its term. However, All County has the option to require the transferee to execute the then-current standard franchise agreement. This new agreement may include different royalties, advertising contributions and expenditures, duration, and other rights and obligations.
If the remaining term of the existing agreement is two years or less when it is transferred, the franchisee must notify the proposed transferee in writing, with additional written notice to All County, that the transferee must be willing to execute All County's then current standard franchise agreement as a condition of the transfer.
This means that a prospective All County franchisee needs to be aware that if they purchase an existing franchise, they may not necessarily be able to operate under the terms of the original franchise agreement. All County has the discretion to impose a new franchise agreement with potentially different terms, which could impact the profitability and operational aspects of the business. It is crucial to understand the terms of both the original agreement and the current standard agreement to make an informed decision.