For how long does the covenant not to compete last after termination or expiration of the All County franchise agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.4. Covenant Not to Compete. Upon the termination or expiration of this Agreement in accordance with its terms and conditions, including the transfer or assignment of this Agreement or any interest in the Business, you agree that, for a period of thirty-six (36) months commencing on the effective date of termination or expiration neither you nor any of your owners will have any direct or indirect interest as a disclosed or beneficial owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative or agent or in any other capacity in any Competitive Business operating or providing services within your Territory or within 50 miles of any point on the outer perimeter of your Territory. You are prohibited from selling or 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.
- 23.5. Commencement by Order. If it becomes necessary to enforce the Covenant Not to Compete by court order, we will seek to enjoin competition for two years from the date of issuance of the order. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Article will not deprive you of your personal goodwill or ability to earn a living.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the covenant not to compete lasts for a period of thirty-six months after the termination or expiration of the franchise agreement. This means that for three years following the end of the franchise agreement, the franchisee and their owners are restricted from engaging in any competitive business within their former territory or within 50 miles of its outer perimeter. This restriction applies to any direct or indirect interest, including roles as an owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative, or agent.
The non-compete agreement prevents franchisees from leveraging the knowledge and experience gained while operating an All County franchise to directly compete with the brand shortly after their departure. This measure is designed to protect All County's market share and the interests of other franchisees within the system. The FDD also states that franchisees are prohibited from selling or 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 All County or to All County or their designees.
If All County seeks to enforce the non-compete agreement through a court order, the document indicates that All County will pursue an injunction against competition for two years from the date the order is issued. The FDD states that All County believes that franchisees possess general skills and abilities and have other opportunities for exploiting such skills. Consequently, All County believes that the enforcement of the covenants made in this Article will not deprive franchisees of their personal goodwill or ability to earn a living.