Under what conditions can All County refuse to permit a transfer of ownership of a franchise?

According to All County's 2025 Franchise Disclosure Document, All County can refuse a transfer of franchise ownership only for "good cause." This stipulation ensures that All County cannot arbitrarily deny a transfer, protecting the franchisee's investment and ability to realize its value. However, this right is subject to specific conditions that define what constitutes "good cause."

All County defines "good cause" as including, but not limited to, several key scenarios. These include if the proposed transferee fails to meet All County's then-current reasonable qualifications or standards, ensuring that any new franchisee meets the brand's requirements for competence and suitability. Another cause is if the proposed transferee is a competitor of All County or its subfranchisor, preventing potential conflicts of interest and protecting All County's market position. The refusal can also occur if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations, ensuring adherence to the franchise agreement. Finally, All County can refuse the transfer if the franchisee or proposed transferee fails to pay any sums owing to All County or to cure any default in the franchise agreement existing at the time of the proposed transfer, addressing financial and contractual non-compliance.

It is important to note that this provision does not prevent All County from exercising a right of first refusal to purchase the franchise. This means that All County has the option to buy the franchise back itself, on the same terms offered by a third party. This clause allows All County to maintain control over its brand and network, while still providing the franchisee with an exit strategy. Prospective franchisees should carefully consider these conditions and seek legal counsel to fully understand their rights and obligations regarding franchise transfers.