Is the issuance of additional securities representing ownership in the All County franchise considered an assignment?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
20.3. Assignments. An assignment, transfer, sale, gift or other disposition includes the following events:
- 20.3.1. transfer of ownership of capital stock, partnership interest, or other equity interest in you;
20.3.2. merger or consolidation or issuance of additional securities or interests representing an ownership interest in you;
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the issuance of additional securities representing ownership in the All County franchise is considered an assignment. Specifically, the FDD states that an assignment, transfer, sale, gift, or other disposition includes the issuance of additional securities or interests representing an ownership interest in the franchisee.
This means that if a franchisee decides to issue more stock or other securities that increase ownership in their All County franchise business, it is legally considered an assignment. As such, the franchisee would need to seek prior written approval from All County. Transferring ownership without approval constitutes a breach of the franchise agreement and is considered void.
All County's approval is conditional on the prospective transferee agreeing to sign the then-current franchise agreement and meeting All County's qualifying conditions and requirements. However, All County will not unreasonably withhold approval of a prospective franchisee. This requirement ensures that All County maintains control over who owns and operates its franchises and that any new owners meet their standards.