What are the owners of an All County franchise undertaking to be bound by in the agreement they execute?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2.4. Each of your owners, at any time during the Term of this Agreement, will execute an agreement in the form that we prescribe (see Appendix C to this Agreement) undertaking to be bound jointly and severally by all provisions of this Agreement and any ancillary agreements between you and us that bind you. You and your owners agree to execute and deliver to us such revised copies of Appendix A as may be necessary to reflect any changes in the information contained therein and to furnish such other information about your organization or information as we may request within five (5) days of change.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, partnership, or other business entity, each owner must execute an agreement to be bound jointly and severally by all provisions of the Franchise Agreement and any ancillary agreements between the franchisee and All County. This agreement is in a form prescribed by All County, as detailed in Appendix C of the Franchise Agreement.
This means that each owner is personally responsible for ensuring the All County franchise complies with all terms and conditions outlined in the agreement. This includes, but is not limited to, financial obligations, operational standards, and adherence to All County's business practices. The 'jointly and severally' clause means that each owner can be held liable for the entire amount of any debt or obligation, not just a portion.
For a prospective All County franchisee, this is a critical point to consider. Before signing the franchise agreement, all owners should carefully review and understand all its provisions and ancillary agreements. They should also be aware of the potential financial and legal risks associated with being jointly and severally bound by the agreement. Seeking legal counsel to review the agreement is highly recommended to fully understand the implications of this clause.
This requirement is fairly standard in franchising, as franchisors want to ensure that all individuals with a significant stake in the business are committed to upholding the brand's standards and meeting the contractual obligations. It protects All County by providing recourse against all owners, not just the business entity itself, in case of a breach of contract.