Is the transfer of an interest in the All County franchise in a divorce proceeding considered an assignment?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
20.3. Assignments. An assignment, transfer, sale, gift or other disposition includes the following events:
- 20.3.1. transfer of ownership of capital stock, partnership interest, or other equity interest in you;
20.3.2. merger or consolidation or issuance of additional securities or interests representing an ownership interest in you;
20.3.3. any issuance or sale of your stock or any security convertible to your stock to any person or entity other than an existing owner;
20.3.4. transfer of an interest in you, this Agreement or the Business in a divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of law;
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;
20.3.6. pledge of this Agreement (to someone other than us) or of an ownership interest in you as security, foreclosure upon the Business or your transfer, surrender or loss of possession, control or management of the Business; or
20.3.7. 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, a transfer of interest in the franchise due to divorce 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 a divorce proceeding.
This means that if a franchisee's ownership interest in the All County franchise changes as a result of a divorce, it is treated as an assignment under the franchise agreement. As such, the franchisee must obtain All County's prior written approval for the transfer. Failure to obtain this approval would constitute a breach of the agreement and render the transfer void.
All County's approval is conditional on the prospective transferee (i.e., the spouse receiving the interest in the franchise) agreeing to sign the then-current franchise agreement and meeting All County's qualifying conditions and requirements. However, All County will not unreasonably withhold approval of a prospective franchisee. This ensures that All County maintains control over who operates its franchises and that all franchisees meet its standards, even in the event of a divorce-related transfer.