After termination of the All County Franchise Agreement, can I be an employee in a management capacity for a competing business?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.4. Covenant Not to Compete. 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 the 2025 All County Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, franchisees are subject to a covenant not to compete. This covenant restricts the franchisee and their owners from having any direct or indirect interest as an owner, investor, partner, director, officer, or employee in a management or sales capacity in a Competitive Business. This restriction applies within the franchisee's Territory or within 50 miles of the outer perimeter of their Territory. The covenant is in effect for 36 months, starting from the termination or expiration date.
This means that after the All County franchise agreement ends, you cannot work as an employee in a management capacity for a competing real estate property management business within your previously assigned territory or within 50 miles of it for three years. A "Competitive Business" is defined as any business offering real estate property management services or products similar to those offered by All County, or any business that franchises or licenses others to do the same.
All County retains the right to seek a court order to enforce this non-compete agreement, potentially extending the injunction against competition to two years from the date of the court order. The FDD 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. This clause aims to protect All County's market share and proprietary business methods by preventing former franchisees from using their knowledge and experience gained while operating an All County franchise to benefit a competing business in the same geographic area.