What is the seller required to provide to All County along with the bona fide offer?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.8. Bona Fide Offers. If you (or any of your owners) at any time determine to sell, assign or transfer for consideration an interest in this Agreement and the Business or an ownership interest in you, you agree to obtain a bona fide, executed written offer and earnest money deposit (in the amount of five percent (5%) or more of the offering price) and a completed franchise application from a fully disclosed offeror (including lists of the owners of record and beneficial owners of any corporate or limited liability company, or all general and limited partners of any partnership, or, in the case of a publicly held corporation or limited partnership, copies of the most current annual and quarterly reports and Form 10K) and immediately submit to us a true and complete copy of such offer, which includes details of the payment terms of the proposed sale.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if a franchisee or their owners decide to sell their interest in the franchise, they must first obtain a bona fide, executed written offer. This offer must include an earnest money deposit of at least five percent of the offering price.
Along with the offer, the franchisee must also provide a completed franchise application from the offeror. This application needs to fully disclose the offeror's identity, including lists of owners of record and beneficial owners if the offeror is a corporation or LLC, or all general and limited partners if a partnership. For publicly held corporations or limited partnerships, copies of the most current annual and quarterly reports and Form 10K are required.
The franchisee must then submit a true and complete copy of the offer to All County, including details of the payment terms of the proposed sale. This allows All County to exercise its right of first refusal, ensuring they have the opportunity to purchase the franchise on the same terms as the outside offeror.