Under what circumstances does All County have the option to purchase my business?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
23.6. Our Rights to Purchase the Business.
23.6.1. Exercise of Option. Upon termination or expiration of this Agreement in accordance with its terms and conditions or your termination of this Agreement without cause, we have the option, exercisable by giving written notice to you within sixty (60) days from the date of such termination or expiration, to purchase the Business from you, including the leasehold rights to the Location, free and clear of all liens, restrictions or encumbrances. (The date on which we notify you whether or not we are exercising our option is referred to in this Agreement as the "Notification Date.") We have the unrestricted right to assign this option to purchase the Business. We will be entitled to all customary warranties and representations in connection with our asset purchase, including, without limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise.
23.6.2. Leasehold Rights. You agree, at our election, to assign your leasehold interest in the Location to us or, to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the prime lease.
23.6.3. Purchase Price. The purchase price for the Business will be its fair market value, determined in a manner consistent with reasonable depreciation of the Business' equipment, signs, inventory, materials and supplies, provided that the Business will be valued as an independent business and its value will not include any value for the Franchise or any rights granted by this Agreement; the Marks; or participation in the network of ALL COUNTY® businesses. The length of the remaining term of the lease for the Location will also be considered in determining the Business' fair market value.
23.6.4. Exclusions. We may exclude cash or its equivalent and any equipment, signs, inventory, materials and supplies that are not reasonably necessary (in function or quality) to the Business' operation or that we have not approved as meeting standards for ALL COUNTY® businesses from the assets purchased, and the purchase price will reflect these exclusions.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County has the option to purchase your business under specific circumstances related to the termination or expiration of the franchise agreement. If the franchise agreement is terminated or expires, or if you terminate the agreement without cause, All County has the option to purchase the business.
To exercise this option, All County must provide you with written notice within 60 days from the date of termination or expiration. This purchase includes the leasehold rights to the business location, free of any liens or encumbrances. All County also has the right to assign this purchase option to another party. As part of the asset purchase, All County will be entitled to customary warranties and representations, including those related to ownership, condition, title to assets, liens, validity of contracts, and liabilities.
The purchase price for the All County business will be based on its fair market value, determined by considering reasonable depreciation of equipment, signs, inventory, materials, and supplies. The valuation will be as an independent business, excluding any value associated with the All County franchise, rights granted by the agreement, the brand's trademarks, or participation in the All County network. The remaining term of the location's lease will also factor into the fair market value assessment. All County can exclude cash, equivalents, and any equipment, signs, inventory, materials, and supplies not deemed reasonably necessary for the business's operation or that do not meet All County's standards, which will be reflected in the purchase price.