Under what conditions can All County assign the franchise agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
20. TRANSFER AND ASSIGNMENT.
20.1. Assignment by Us. This Agreement is fully transferable by us and will inure to the benefit of any transferee or other legal successor to our interests herein.
20.2. Assignment by You. This Agreement and the Franchise are granted personally to you. You may only assign or transfer any interest or ownership that you may have in the Business with our prior written approval. Any transfer without such approval constitutes a breach of this Agreement and is void. Our approval is conditioned on the prospective transferee agreeing to sign our then-current franchise agreement with us and meeting our qualifying conditions and requirements. We will not unreasonably withhold the approval of a prospective franchisee.
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 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 31–34)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County can fully transfer the franchise agreement, which will benefit any transferee or legal successor to their interests. However, such an assignment will only be made to an assignee who, in All County's good faith judgment, is willing and financially able to assume All County's obligations under the Franchise Agreement.
For a franchisee to assign or transfer any interest or ownership in the business, they must obtain prior written approval from All County. Any transfer without this approval is considered a breach of the agreement and is void. All County states that they will not unreasonably withhold approval of a prospective franchisee.
The prospective transferee must agree to sign All County's then-current franchise agreement and meet their qualifying conditions and requirements. An assignment, transfer, sale, gift, or other disposition includes events such as transfer of ownership, merger or consolidation, issuance of additional securities, transfer of interest in divorce or death, pledge of the agreement, or transferring accounts or clients to anyone except another approved All County business or to All County itself.