According to the All Team FDD, who is included in the definition of 'FRANCHISEE'?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. "FRANCHISEE" shall be deemed to include: (a) those persons and their spouses owning any interest in a corporate franchisee or a limited liability company; (b) all partners and their spouses owning any interest in a partnership franchisee; (c) the individual who owns a sole proprietorship franchisee and his or her spouse; and (d) the guarantors of this Agreement.
For purposes of determining ownership in a franchise, the interests owned by a husband and wife shall be considered one interest, and both husband and wife shall be obligated hereunder, regardless of whether the interest is owned by just one spouse or both spouses.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the term 'FRANCHISEE' includes several categories of individuals and entities. This definition is important because it clarifies who is bound by the terms of the Franchise Agreement.
Specifically, the definition encompasses (a) those persons and their spouses owning any interest in a corporate franchisee or a limited liability company, (b) all partners and their spouses owning any interest in a partnership franchisee, (c) the individual who owns a sole proprietorship franchisee and his or her spouse, and (d) the guarantors of the Agreement. The inclusion of spouses is notable, as it extends the obligations and responsibilities of the franchise agreement to them, regardless of whether they are directly involved in the business operations.
Furthermore, for the purpose of determining ownership in a franchise, the interests owned by a husband and wife are considered as one interest. This means that both husband and wife are obligated under the agreement, irrespective of whether the interest is owned by one or both spouses. This comprehensive definition ensures that all parties with a vested interest in the franchise are held accountable for fulfilling the terms and conditions of the franchise agreement.