Does All County have a right of first refusal to acquire my All County franchise business?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) A provision which permits a franchisor to refuse to permit a transfer of ownership of a franchise, except for good cause. This subdivision does not prevent a franchisor from exercising a right of first refusal to purchase the franchise. Good cause shall include, but is not limited to:
- (i) The failure of the proposed transferee to meet the franchisor's then-current reasonable qualifications or standards.
- (ii) The fact that the proposed transferee is a competitor of the franchisor or subfranchisor.
- (iii) The unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.
- (iv) The failure of the franchisee or proposed transferee to pay any sums owing to the franchisor or to cure any default in the franchise agreement existing at the time of the proposed transfer.
- (h) A provision that requires the franchisee to resell to the franchisor items that are not uniquely identified with the franchisor. This subdivision does not prohibit a provision that grants to a franchisor a right of first refusal to purchase the assets of a franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this subdivision prohibit a provision that grants the franchisor the right to acquire the assets of a franchise for the market or appraised value of such assets if the franchisee has breached the lawful provisions of the franchise agreement and has failed to cure the breach in the manner provided in subdivision (c).
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 a right of first refusal to purchase your franchise. This means that if you receive a legitimate offer from a third party to buy your All County franchise, you must first offer All County the opportunity to purchase the franchise on the same terms and conditions.
This right of first refusal does not allow All County to prevent you from selling your franchise, but it does give them the option to buy it themselves if they match the offer. This is a common provision in franchise agreements, allowing the franchisor to maintain control over the brand and ensure that new franchisees meet their standards. All County can refuse a transfer if the proposed transferee does not meet All County's qualifications or standards, is a competitor, or is unwilling to comply with all lawful obligations. Also, All County can refuse a transfer if the franchisee or proposed transferee fails to pay any sums owing to All County or to cure any default in the franchise agreement.
All County also has the right to purchase the assets of a franchise on the same terms as a third party or to acquire the assets for market or appraised value if the franchisee has breached the franchise agreement and failed to cure the breach.