Who does the All Team agreement apply to, besides the parties directly involved?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE IS NOT A FRANCHISEE OF ATFC AND MAY NOT RELY UPON BECOMING A FRANCHISEE OF ATFC.**
IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth below their names.
ALL TEAM FRANCHISE CORPORATION Brian Hindman, Chief Executive Officer , Address of FRANCHISEE:# GUARANTY AND ASSUMPTION OF OBLIGATIONS
In consideration of, and as an inducement to, the execution of the above Franchise Agreement (the "Agreement"), by ALL TEAM FRANCHISE CORPORATION ("ATFC") in favor of _______________________ ("FRANCHISEE"), each of the undersigned ("GUARANTORS") hereby personally and unconditionally guarantees to ATFC, its Affiliates (as hereinafter defined), and their successors and assigns for the term of the Agreement and thereafter as provided in the Agreement, that FRANCHISEE shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and agrees to be personally bound by, and personally liable for the breach of each and every provision in the Agreement, including but not limited to, the restrictive covenants and nondisclosure provisions contained in the Agreement, as well as the provisions in the Agreement relating to the Marks and Transfers to the same extent as and for the same period of time as FRANCHISEE is required to comply with and abide by such covenants and provisions. All of the foregoing obligations of the undersigned shall survive any expiration or termination of the Franchise Agreement or this Guaranty and Assumption of Obligations.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchise agreement extends beyond the direct parties involved, namely All Team Franchise Corporation and the franchisee. Specifically, the agreement includes 'Guarantors,' who personally guarantee the franchisee's obligations to All Team, its affiliates, successors, and assigns. This guarantee covers the franchisee's undertakings, agreements, and covenants, including restrictive covenants, nondisclosure provisions, and obligations related to the Marks and Transfers. These obligations of the guarantors survive any expiration or termination of the Franchise Agreement or the Guaranty and Assumption of Obligations.
The Guarantors also guarantee all debts and obligations the franchisee incurs to All Team, its successors, assigns, affiliated entities, parent corporation, and subsidiaries as a result of obligations under the agreement and purchases of products or services from All Team and its Affiliates. This ensures that All Team has recourse to additional parties beyond the franchisee to secure financial and operational compliance with the franchise agreement.
This arrangement has significant implications for prospective franchisees. It means that individuals, such as family members or business partners, who act as guarantors are personally liable for the franchisee's performance and debts. Potential franchisees need to carefully consider who they involve as guarantors, as those individuals will be legally bound to ensure the franchisee meets all obligations under the All Team Franchise Agreement. The guarantors should fully understand the scope of their responsibilities and potential financial risks.