Are any of the approved suppliers for All Team franchisees affiliated with ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Some of the approved suppliers may be affiliated with ATFC.
ATFC may require that samples from other suppliers of any products to be used by FRANCHISEE be delivered to ATFC for testing prior to approval and use. A charge not to exceed the actual cost of the test may be made by ATFC or by an independent testing laboratory designated by ATFC and shall be paid by FRANCHISEE. ATFC shall advise FRANCHISEE within a reasonable period of time of its approval or disapproval of alternate sources of products, services, supplies, suppliers, materials and equipment. The foregoing shall not be construed as an attempt to unreasonably limit the sources from which FRANCHISEE may procure its products, services, supplies and materials. Rather, it is the intention of ATFC that such items conform to ATFC's strict standards and strict specifications as to consistent quality, uniformity and reliability. Further, ATFC shall not be required to approve an inordinate number of suppliers of a given item which in the reasonable judgment of ATFC would prevent effective supervision of suppliers by ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, some of the approved suppliers may be affiliated with ATFC. This means that All Team franchisees may be required to purchase or lease products, services, supplies, computer software and hardware, equipment, and materials from suppliers that have a business relationship with All Team's parent company, ATFC.
This arrangement could present both benefits and risks for franchisees. On one hand, it could ensure consistent quality and standards across the All Team system, as ATFC can exert more control over affiliated suppliers. Additionally, ATFC or its affiliates may receive benefits such as rebates, commissions, or promotional allowances from these suppliers based on franchisee purchases.
However, franchisees should also be aware of potential drawbacks. Affiliated suppliers might not always offer the most competitive prices, as the relationship with ATFC could reduce the incentive to offer the best possible deals. It is important for prospective franchisees to evaluate the pricing and quality of goods and services from approved suppliers, including those affiliated with ATFC, to ensure they align with their business needs and budget. Franchisees also have the right to request approval of alternate suppliers if they meet All Team's specifications.