If All County chooses to sublease the Location, what terms will the sublease have?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.6.2. Leasehold Rights. You agree, at our election, to assign your leasehold interest in the Location to us or, to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the prime lease.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, in the event of termination or expiration of the franchise agreement, All County has the option to purchase the business, including the leasehold rights to the location. If All County exercises this option, the franchisee agrees to either assign their leasehold interest to All County or enter into a sublease.
If All County chooses the sublease option, the terms of the sublease will mirror those of the original prime lease, including any renewal options. This means the franchisee would essentially step into the shoes of the original lessee under the same conditions.
This provision protects All County by ensuring they can maintain control of the business location if they choose to continue operations after the franchise agreement ends. For the franchisee, it means they may be required to sublease the location to All County under the existing lease terms, which could impact their ability to negotiate different terms or exit the location entirely.