Does All County have the right to assign the franchise agreement to another party?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
| SECTION IN | ||
|---|---|---|
| FRANCHISE | ||
| PROVISION | AGREEMENT | SUMMARY |
| i. Franchisee’s obligations on termination/non-renewal | 23 | Pay us what you owe us; cease using the Marks; and follow our termination procedures; transfer all telephone numbers, clients, and accounts of the Franchise Business to us or our designee; give us all copies of your customer lists; cancel fictitious business names; adhere to the covenant not to compete in the Franchise Agreement. |
| j. Assignment of contract by franchisor | 20.1 | Fully transferable by us. However, no assignment will be made except to an assignee who, in good faith and judgment of the franchisor, is willing and financially able to assume the franchisor’s obligations under the Franchise Agreement. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 31–34)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County has the right to fully transfer the franchise agreement. However, All County will only assign the agreement to an assignee who, in All County's good faith judgment, is willing and financially able to assume All County's obligations under the Franchise Agreement.
This means that a prospective All County franchisee should be aware that the franchisor can transfer its rights and obligations to another party. This is a fairly standard clause in franchise agreements, as it allows the franchisor to sell the franchise system or merge with another company.
However, the FDD states that All County must make the assignment to someone willing and able to fulfill the obligations. This provides some protection to the franchisee, ensuring that the new franchisor is capable of supporting the All County franchise system. Franchisees should carefully consider the implications of this clause and how it might affect their business if All County were to be acquired or sold.