If All County elects for a sublease, must the terms of the sublease be the same as the prime lease?
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 from a franchisee upon termination or expiration of the franchise agreement, the franchisee must assign their leasehold interest in the location to All County. Alternatively, the franchisee must enter into a sublease with All County for the remainder of the lease term.
The terms of the sublease must mirror the terms of the original prime lease, including any renewal options. This ensures that All County can continue operating the business at the same location under the same conditions as the franchisee did.
This requirement protects All County's interests by allowing it to maintain control over the location of the business, which is crucial for maintaining brand consistency and customer relationships. For a franchisee, this means they may be required to sublease the property to All County under the same terms as their original lease if All County chooses to exercise this option.