Is the issuance of additional securities considered an assignment of the All County franchise?

According to All County's 2025 Franchise Disclosure Document, the issuance of additional securities or interests representing an ownership interest in the franchisee is considered an assignment or transfer of the franchise. This falls under the broader category of events that constitute an assignment, transfer, sale, or other disposition of the franchise agreement.

For a prospective All County franchisee, this means that if the business structure involves capital stock, partnership interests, or other equity interests, any transfer of these interests, including the issuance of additional securities, is treated as an assignment of the franchise. This is a significant point because any assignment or transfer requires prior written approval from All County, and failure to obtain this approval constitutes a breach of the franchise agreement.

All County's approval is conditional, requiring the prospective transferee to sign the then-current franchise agreement and meet All County's qualifying conditions and requirements. While All County states that it will not unreasonably withhold approval, the franchisee must still navigate the approval process and ensure the transferee meets all stipulated criteria. This process is designed to maintain the integrity and standards of the All County franchise system.

This provision protects All County by ensuring that any changes in ownership or equity structure are subject to their review and approval, allowing them to maintain control over who operates an All County franchise. Franchisees need to be aware of these conditions to avoid inadvertently breaching their franchise agreement through equity transactions.