What are the non-competition covenants after the All County franchise is terminated or expires?
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 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 31–34)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, after the franchise agreement is terminated or expires, a franchisee is restricted from operating a similar business. Specifically, for a period of 36 months after the termination or expiration date, the franchisee (or any of their owners) cannot have any direct or indirect interest in a Competitive Business. This restriction applies within the franchisee's Territory or within 50 miles from the outer perimeter of their Territory.
This means that a former All County franchisee cannot be an owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative, or agent in any competitive business within the specified geographic area. The franchisee is also prohibited from selling or transferring any of the business's accounts or clients to anyone except to another All County business approved in writing by All County or to All County or its designees.
All County also states that if it becomes necessary to enforce the non-compete covenant through a court order, they will seek to prevent competition for two years from the date the order is issued. The FDD states that All County believes that enforcing these covenants will not deprive the franchisee of their personal goodwill or ability to earn a living, as they possess general skills and abilities and have other opportunities to use them.
These non-compete terms are fairly standard in franchising, designed to protect the brand and customer base. Prospective franchisees should carefully consider the geographic scope and duration of the non-compete, and how it might impact their future career options if they decide to leave the All County system.