Can All County purchase businesses that are competitive to an All County franchise within the franchisee's territory?

According to All County's 2025 Franchise Disclosure Document, All County has the right to purchase and operate competitive businesses within a franchisee's territory. Specifically, All County can operate directly or through an affiliate, and grant to others the right to operate businesses they purchase, even if those businesses are competitive or part of another franchise system. These businesses can be operated independently or converted to use All County's marks and system. This right extends within a franchisee's territory and elsewhere.

This clause means that even though a franchisee is granted a specific territory, All County retains the right to introduce competition within that territory through acquisitions. This could potentially impact the franchisee's market share and profitability. The franchisee has no recourse against All County if this occurs.

This is a significant consideration for potential franchisees. While the franchise agreement grants a territory, this exclusivity is limited by All County's right to purchase and operate competing businesses. Prospective franchisees should carefully evaluate the potential impact of this clause on their investment and discuss it with All County during their due diligence. Understanding All County's acquisition strategy and potential plans for the franchisee's territory is crucial.