After termination of the All County Franchise Agreement, can I be a consultant for a competing business?
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.
If it becomes necessary to enforce the Covenant Not to Compete by court order, we will seek to enjoin competition for two years from the date of issuance of the order. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Article will not deprive you of your personal goodwill or ability to earn a living.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, after the termination or expiration of the Franchise Agreement, franchisees are subject to a covenant not to compete. This means that for a period of 36 months following the termination or expiration date, neither the franchisee nor their owners can have any direct or indirect interest or involvement with a Competitive Business.
A "Competitive Business" is defined as any business offering real estate property management services or products similar to those offered by All County. The restriction extends to various roles, including being an owner, investor, partner, director, officer, employee in a management or sales capacity, consultant, representative, or agent. This non-compete obligation applies within the franchisee's Territory or within 50 miles of any point on the outer perimeter of their Territory.
This non-compete clause prevents a former All County franchisee from leveraging their knowledge and experience gained during the franchise term to benefit a competing business in the same geographical area. The FDD also states that All County will seek to prevent competition for two years from the date of a court order if it becomes necessary to enforce the covenant not to compete by court order. Franchisees acknowledge that they possess general skills and abilities and have other opportunities for exploiting such skills, so enforcement of the non-compete will not deprive them of their personal goodwill or ability to earn a living.