If All County excludes assets from the purchase, how does this affect the purchase price?

According to All County's 2025 Franchise Disclosure Document, when All County exercises its option to purchase a franchise location, it has the right to exclude certain assets from the purchase. Specifically, All County may exclude cash or its equivalent, as well as any equipment, signs, inventory, materials, and supplies that are not reasonably necessary for the business's operation or that do not meet All County's standards.

This exclusion of assets directly affects the purchase price. The FDD states that the purchase price will reflect these exclusions. This means that the fair market value of the business, which serves as the basis for the purchase price, will be reduced by the value of any excluded assets.

For a prospective All County franchisee, this clause has important implications. If All County decides to purchase the business upon termination or expiration of the franchise agreement, the franchisee may not receive compensation for all of the assets they own. It is crucial for franchisees to maintain assets in good condition and ensure they meet All County's standards to maximize their potential return if All County exercises its purchase option. Franchisees should seek clarity from All County regarding the specific standards and requirements for assets to be included in a potential purchase.