Is the transfer of an interest in the All County franchise by will considered an assignment?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.3.5. transfer of an interest in you, this Agreement or the Business, in the event of your death or the death of one of your owners, by will, declaration of or transfer in trust or under the laws of intestate succession;
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the transfer of an interest in the franchise by will is considered an assignment. Specifically, the FDD states that an assignment, transfer, sale, gift, or other disposition includes the transfer of an interest in the franchisee, the Franchise Agreement, or the business in the event of death, by will, declaration of trust, or under laws of intestate succession. This means that if a franchisee passes away and their interest in the All County franchise is transferred through their will, it is treated as an assignment under the terms of the Franchise Agreement.
This has significant implications for the franchisee's heirs or beneficiaries. Because the transfer is considered an assignment, it is subject to All County's approval. The prospective transferee (the person inheriting the franchise interest) must meet All County's qualifying conditions and requirements, and agree to sign the then-current franchise agreement. This could involve demonstrating the necessary skills, financial capacity, and moral character to operate the business. All County will assess these factors before approving the transfer.
Furthermore, the new franchisee may be required to execute All County's current standard form of franchise agreement, which may have different terms than the original agreement. This could include different royalty fees, advertising contributions, and other obligations. The FDD states that All County will not unreasonably withhold approval of a prospective franchisee, but the ultimate decision rests with them. Therefore, it is crucial for prospective franchisees to understand these transfer conditions and discuss them with their legal and financial advisors, as well as with All County, to ensure a smooth transition in the event of death or other unforeseen circumstances.