What outstanding payments must be made before transferring an All County franchise?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
If the transfer is of this Agreement or a controlling interest in you, or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
20.4.1. Abilities. The transferee and its direct and indirect owners have the moral character, skill, aptitude, attitude, experience, references, credentials, acumen and financial capacity to operate the Business.
20.4.2. Current Accounts. You have paid all Royalties, Ad Fees, amounts owed for purchases from us and all other amounts owed to us or to third party creditors and have submitted all required reports and statements.
20.4.3. Training. The transferee's Managing Owner has agreed to complete training to our satisfaction and does complete training to our satisfaction prior to closing.
20.4.4. Franchise Agreement. The transferee has agreed to be bound by all of the terms and conditions of this Agreement for the remainder of its Term or, at our option, must execute our then current standard form of franchise agreement and related documents used in the state in which your Business is located (which may provide for different royalties, advertising contributions and expenditures, duration and other rights and obligations than those provided in this Agreement).
In the event this Agreement is transferred to a third party transferee in accordance with the terms of this Agreement and the remaining Term of this Agreement is two (2) years or less, then you acknowledge that prior to any such transfer you must notify the proposed transferee in writing, with additional written notice to us, that as a required condition of the proposed transfer the transferee must be willing
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, a franchisee must meet specific financial obligations before transferring their franchise. All County requires that the franchisee has paid all outstanding Royalties, Ad Fees, amounts owed for purchases from All County, and all other amounts owed to All County or to third-party creditors.
In addition to settling these outstanding balances, the franchisee must have also submitted all required reports and statements to All County. This ensures that the franchisee is current on all financial and reporting responsibilities before the transfer can proceed.
Furthermore, the franchisee will likely incur a transfer fee of $10,000, plus legal and administrative costs. However, this transfer fee is waived if the transfer is among the owner's first or second-degree relatives. The prospective franchisee should carefully review all financial obligations and ensure full compliance to facilitate a smooth transfer process.