Can All County operate competitive businesses within an All County franchisee's territory?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.4. Affiliate and Acquisition Distribution. You agree that we have the right to operate, directly or through an affiliate, and to grant to others the right to operate, within your Territory and elsewhere businesses that we purchase (or as to which we purchase the rights as franchisor) that are competitive businesses or part of another franchise system or chain, regardless of whether any or all of them are converted to use any or all of the Marks and/or System or continue to be operated independently.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County has the right to operate competitive businesses within a franchisee's territory. Specifically, All County can operate these businesses directly or through an affiliate, or grant others the right to operate them. These competitive businesses can be businesses that All County purchases, or businesses for which All County purchases the rights as a franchisor. These businesses can be part of another franchise system or chain. All County has the right to do this regardless of whether these businesses are converted to use All County's marks and system or continue to operate independently.
This could create competition for the franchisee within their own territory. While the franchisee is granted a territory, All County retains significant rights to operate or franchise competitive businesses within that same territory. This is a significant risk factor for prospective franchisees as it could directly impact their revenue and profitability.
It is important for a prospective All County franchisee to understand the potential impact of this clause on their business. They should inquire about All County's plans for operating or franchising competitive businesses within their territory. They should also seek legal counsel to fully understand the implications of this clause and negotiate for more favorable terms if possible.