If All County excludes certain assets, how does this affect the purchase price of my All County business?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.6.4. Exclusions. We may exclude cash or its equivalent and any equipment, signs, inventory, materials and supplies that are not reasonably necessary (in function or quality) to the Business' operation or that we have not approved as meeting standards for ALL COUNTY® businesses from the assets purchased, and the purchase price will reflect these exclusions.
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 your business upon termination or expiration of the franchise agreement, the purchase price will be affected by any exclusions of assets. All County has the right to exclude certain assets from the purchase, which will be reflected in the final purchase price.
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. The determination of what is "reasonably necessary" or meets All County's standards appears to be at All County's discretion.
This means that as a franchisee, you may not receive full value for all assets if All County deems some unnecessary or substandard. The purchase price will be based on the fair market value of the included assets, excluding any value associated with the franchise itself, the All County marks, or participation in the All County network. The length of the remaining lease term will also factor into the valuation of the business.