What is the starting date for the 36-month non-compete period after the All County franchise agreement is terminated?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement in accordance with its terms and conditions, including the transfer or assignment of this Agreement or any interest in the Business, you agree that, for a period of thirty-six (36) months commencing on the effective date of termination or expiration neither you nor any of your owners will have any direct or indirect interest as a disclosed or beneficial owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative or agent or in any other capacity in any Competitive Business operating or providing services within your Territory or within 50 miles of any point on the outer perimeter of your Territory. You 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 us or to us or our designees.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the 36-month non-compete period begins on the effective date of the termination or expiration of the franchise agreement. This means that once the agreement is officially terminated or expires, the franchisee and their owners must not engage in any competitive business within their territory or within 50 miles of its outer perimeter for the next three years.
This restriction applies to any direct or indirect interest the franchisee or their owners might have in a competitive business, whether as an owner, investor, partner, director, officer, employee, consultant, or agent. The franchisee is also prohibited from selling or transferring any of the business's accounts or clients to anyone except another approved All County business or to All County itself.
All County may seek a court order to enforce the non-compete agreement, in which case the injunction would seek to prevent competition for two years from the date the order is issued. The franchise agreement states that franchisees possess general skills and abilities and have other opportunities to earn a living, so enforcing the non-compete will not deprive them of their personal goodwill or ability to earn a living.