Does All County have the right to disapprove a transfer if the price is too high?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County has the right to disapprove a transfer if the price and terms of payment will adversely affect the transferee's operation of the business.
This means that if a franchisee attempts to sell their All County franchise at an inflated price or under unfavorable payment terms that could hinder the new owner's ability to run the business successfully, All County can block the transfer. This provision protects the brand and the network of franchisees by ensuring that new owners are set up for success and can meet their financial obligations to All County.
For a prospective All County franchisee, this highlights the importance of setting a realistic and fair market value when planning to sell their franchise. Overpricing the business could not only deter potential buyers but also lead to the franchisor rejecting the transfer. Franchisees should consult with All County and potentially seek an independent appraisal to determine a reasonable selling price that aligns with the business's financial health and market conditions. This also means that All County can ensure that the new franchisee has the financial means to operate the franchise successfully.