If All County elects to have the franchisee assign the leasehold interest, is the franchisee obligated to do so?
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, if All County exercises its option to purchase the business upon termination or expiration of the franchise agreement, the franchisee is obligated to assign the leasehold interest in the location to All County if All County elects that option.
Specifically, upon termination or expiration of the agreement, All County has the option to purchase the business, including the leasehold rights to the location. This option is exercisable by giving written notice within 60 days of termination or expiration. All County also has the right to assign this purchase option to another party.
The franchisee agrees, at All County's election, to either assign the leasehold interest in the location to them or enter into a sublease for the remainder of the lease term. The sublease would be on the same terms, including renewal options, as the original prime lease. This clause ensures that All County can maintain control over the location of the business, which is important for brand consistency and continuity.