Under what conditions can All County terminate a franchise agreement before its expiration?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its terms except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 All County Franchise Disclosure Document, the franchise agreement can be terminated prior to its expiration only for "good cause". Good cause includes the failure of the franchisee to comply with any lawful provision of the franchise agreement.
However, All County must provide the franchisee with written notice of the failure and a reasonable opportunity to correct the issue. The FDD specifies that the opportunity to cure the failure need not be more than 30 days. This means that if an All County franchisee violates a term of the franchise agreement, All County must give them written notice and at least some time to fix the problem before terminating the agreement.
This provision is fairly standard in franchising, as it protects franchisees from arbitrary or unfair termination. It also incentivizes All County to work with franchisees to resolve issues rather than immediately resorting to termination. Prospective franchisees should carefully review the franchise agreement to understand what constitutes a breach and what their rights are in the event of a dispute with All County.