Under what condition can All County terminate the Franchise Agreement due to payment issues?

According to All County's 2025 Franchise Disclosure Document, All County can terminate the Franchise Agreement if the franchisee fails to make payments of any amounts due to All County and does not correct this failure within seven days after receiving written notice. This means that if an All County franchisee misses a payment, whether it's for royalties, advertising fees, or any other amount owed to the franchisor, All County has the right to terminate the agreement. However, the franchisee has a seven-day window after receiving written notice to rectify the situation and avoid termination.

Additionally, All County can terminate the agreement if the franchisee fails to pay any federal or state income, service, sales, employment-related, or other taxes due on the operations of the business. However, this does not apply if the franchisee is, in good faith, legally contesting their liability for such taxes. This clause protects franchisees who have a legitimate dispute with tax authorities and are actively pursuing a legal challenge.

These termination clauses are fairly standard in franchise agreements. It is crucial for prospective All County franchisees to understand these payment obligations and ensure they have sufficient financial resources to meet them. Failure to do so could result in the termination of their franchise agreement and the loss of their investment. Franchisees should maintain meticulous financial records and promptly address any payment issues to avoid potential disputes with All County.