What restrictions are placed on the transferring owners regarding non-compete agreements related to All County after the transfer?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
aims against us and our shareholders, officers, directors, employees and agents. Any general release required in the Franchise Agreement as a condition of renewal, sale, and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
20.4.7. Approval. We have approved the material terms and conditions of such transfer and determined that the price and terms of payment will not adversely affect the transferee's operation of the Business.
20.4.8. Priority. If you or your owners finance any part of the sale price of the transferred interest, you and/or your owners have agreed that all of the transferee's obligations pursuant to any promissory notes, agreements or security interests that you or your owners have reserved in the Business are subordinate to the transferee's obligation to pay Royalties, Advertising Fund contributions and other amounts due to us and otherwise to comply with this Agreement.
20.4.9. Collateral Agreement. You and your transferring owners have executed an agreement in favor of us agreeing to be bound, commencing on the effective date of the transfer, by the restrictions contained in this Agreement pertaining to the Marks (Article 14), Confidential Information (Article 15) and a Covenant not to Compete (Article 23.4).
20.4.10. Representation. You and your transferring owners have agreed that you and they will not directly or indirectly at any time or in any manner (except with respect to other ALL COUNTY® businesses you own and operate) identify or represent yourself or themselves or any business as a current or former ALL COUNTY® business, or as one of our licensees or franchisees, use any Marks, any colorable imitation thereof or other indicia of an ALL COUNTY® business in any manner or for any purpose or utilize for any purpose any trade name, trademark or service mark or other commercial symbol that suggests or indicates a connection or association with us.
20.5.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, transferring owners are subject to specific non-compete obligations. As a condition of transfer, transferring owners must execute an agreement to be bound by the restrictions pertaining to the Marks, Confidential Information, and a Covenant not to Compete.
Specifically, upon the transfer of the All County franchise, transferring owners agree to a 36-month covenant not to compete. During this period, they cannot have any direct or indirect interest in a Competitive Business operating within the franchisee's Territory or within 50 miles of the outer perimeter of their Territory. A "Competitive Business" includes any business offering real estate property management services or products similar to those offered by All County.
Furthermore, transferring owners 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 All County or to All County or their designees. They also agree not to represent themselves as a current or former All County business or use any trademarks or commercial symbols associated with All County, except with respect to other All County businesses they own and operate.