Can ATFC assign the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
f law, except with the prior written consent of ATFC with a copy to Centennial, which consent shall not unreasonably be withheld. For all purposes of this Funding Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Funding Agreement requiring such consent. Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement and the Processing Agreement. This Funding Agreement is fully assignable by ATFC.
- F. Successors and Assigns. This Funding Agreement shall be binding upon and shall inure to the benefit of ATFC and USER, and their permitted successors and assigns.
- G.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement is fully assignable by All Team Franchise Corporation (ATFC). However, the franchisee (USER) cannot assign or transfer the Funding Agreement without prior written consent from ATFC, with a copy to Centennial, and such consent will not be unreasonably withheld. A transfer of the majority of the franchisee's equity to new owners or a substantial portion of the business is considered an assignment requiring consent. Any assignment by the franchisee must also align with corresponding assignments under the Franchise Agreement and the Processing Agreement.
This means that All Team has the flexibility to transfer its rights and obligations under the Funding Agreement to another party, such as a financial institution or another franchisee. However, franchisees are restricted from assigning their rights without All Team's approval. This protects All Team's interests and ensures they maintain control over who they do business with.
For a prospective franchisee, this clause highlights the importance of understanding the terms of the Funding Agreement and the conditions under which it can be assigned. While All Team can freely assign the agreement, the franchisee's ability to do so is limited and requires All Team's consent. This could impact the franchisee's ability to sell or transfer their business in the future, as any such transaction would need to comply with the assignment provisions of the Funding Agreement, the Franchise Agreement, and the Processing Agreement.