Can the transferee of an All County franchise be required to agree to different advertising contributions than the original agreement?

According to All County's 2025 Franchise Disclosure Document, a transferee may be subject to different advertising contributions than the original agreement. Specifically, as a condition of transfer, All County has the option to require the transferee to execute the then-current standard form of franchise agreement. This new agreement "may provide for different royalties, advertising contributions and expenditures, duration and other rights and obligations than those provided in this Agreement".

This means that someone buying an existing All County franchise might have to agree to a franchise agreement that mandates higher or lower advertising contributions than what the original franchisee was paying. This could significantly impact the profitability of the franchise for the new owner. It is also possible that other financial obligations, such as royalties, could change.

For a prospective All County franchisee, this underscores the importance of carefully reviewing the current franchise agreement offered at the time of transfer, as its terms could differ substantially from the agreement of the seller. It would be prudent to seek legal and financial advice to fully understand the implications of any changes in advertising contributions or other obligations before completing the purchase.