Is the transfer of an interest in the All County franchise by operation of law considered an assignment?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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;
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 an interest in the franchise, the Franchise Agreement, or the business by operation of law is considered an assignment. Specifically, this includes transfers occurring in divorce, insolvency, corporate or partnership dissolution proceedings.
This means that if a franchisee's ownership interest in the All County business changes due to a legal event like divorce or bankruptcy, it is treated as an assignment requiring franchisor approval. All County requires prior written approval for any assignment or transfer of interest in the business, and any transfer without such approval constitutes a breach of the Franchise Agreement and is void.
For a prospective All County franchisee, this highlights the importance of understanding the implications of various life events on their franchise ownership. It also emphasizes the need to maintain open communication with All County regarding any potential changes in ownership structure to ensure compliance with the Franchise Agreement and avoid potential breaches.