If the All County franchisee is transferring a controlling interest, what conditions must be met?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
tion proceeding or otherwise by operation of law;
- 20.3.5. transfer of an interest in you, this Agreement or the Business, in the event of your death or the death of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession;
- 20.3.6. pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Business or your transfer, surrender or loss of possession, control or management of the Business; or
- 20.3.7. transferring any of the accounts or clients of the Business to anyone except to another ALL COUNTY® business that has been approved in writing by us or to us or our designees.
- 20.4. Conditions for Approval of Transfer. If you and all owners are in full compliance with this Agreement, we will approve a transfer that meets all of our applicable requirements and otherwise meets our applicable standards for ALL COUNTY® businessfranchisees. A transfer of ownership, possession or control of the Business may be made only in conjunction with a transfer of this Agreement. If the transfer is of this Agreement or a controlling interest in you, or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
- 20.4.1. Abilities. The transferee and its direct and indirect owners have the moral character, skill, aptitude, attitude, experience, references, credentials, acumen and financial capacity to operate the Business.
- 20.4.2. Current Accounts. You have paid all Royalties, Ad Fees, amounts owed for purchases from us and all other amounts owed to us or to third party creditors and have submitted all required reports and statements.
- 20.4.3. Training. The transferee's Managing Owner has agreed to complete training to our satisfaction and does complete training to our satisfaction prior to closing.
- 20.4.4.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a transfer of ownership, possession, or control of the business can only occur with the transfer of the Franchise Agreement. If the transfer involves the agreement itself or a controlling interest in the franchisee, specific conditions must be met either before or during the transfer. These conditions ensure that the new owner is capable and that all obligations to All County are fulfilled.
The transferee must demonstrate the necessary moral character, skills, aptitude, experience, and financial capacity to operate the All County business. The franchisee must have paid all outstanding royalties, advertising fees, and other debts to All County and third-party creditors, and must have submitted all required reports and statements. The transferee's Managing Owner is required to complete All County's training program to the company's satisfaction before the transfer can be finalized.
Furthermore, the transferee must agree to adhere to all the terms and conditions of the existing Franchise Agreement for the remainder of its term. However, All County has the option to require the transferee to execute the then-current standard franchise agreement, which may include different terms regarding royalties, advertising contributions, duration, and other obligations. The transferring owners must also agree not to represent themselves as being associated with All County, except for other All County businesses they may own.
These conditions are typical in franchising to protect the brand and ensure that new franchisees meet the franchisor's standards. Prospective All County franchisees should carefully review these requirements and discuss any concerns with All County before proceeding with a transfer.