What is included in All County's reasonable out-of-pocket expenses related to a transfer?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the transfer fee, you agree to pay us our reasonable legal fees and administrative costs incurred, and our reasonable out-of-pocket expenses, including, without limitation, travel, meals, lodging and other investigative expenses involved in meeting with or qualifying the transferee.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if you transfer your franchise, you are responsible for covering All County's reasonable out-of-pocket expenses. These expenses include travel, meals, lodging, and other investigative costs that All County incurs while meeting with or assessing the potential transferee.
This means that in addition to the $10,000 transfer fee, you could face additional costs to reimburse All County for their expenses. These expenses are associated with the process of evaluating and qualifying the person or entity to whom you are transferring the franchise.
It's important to note that these out-of-pocket expenses are separate from the $10,000 transfer fee and the $2,500 Transferee Administrative Fee (paid by the transferee). Therefore, a franchisee should factor in these potential costs when considering a franchise transfer. Understanding the scope of these potential expenses is crucial for financial planning during a transfer.