When valuing the All County business, is participation in the network of All County businesses included?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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, when All County exercises its option to purchase the business upon termination or expiration of the franchise agreement, the valuation of the business excludes any value for participation in the All County network. The purchase price will be based on the fair market value of the business as an independent entity, considering factors like equipment, signs, inventory, materials, and supplies, depreciated reasonably. The remaining lease term for the location will also factor into the fair market value assessment.
This means that the franchisee will not be compensated for the brand recognition, support, or potential benefits derived from being part of the All County franchise system. The valuation focuses solely on the tangible assets and the leasehold rights associated with the specific business location.
All County also has the right to exclude certain assets from the purchase, such as cash or items not deemed reasonably necessary for the business's operation or those not meeting All County's standards. This exclusion further impacts the final purchase price, as it only accounts for assets approved by All County and essential for the business. Therefore, the franchisee should be aware that the resale value to All County will not reflect the intangible benefits of franchise membership.