Can ATFC withhold or revoke approval of particular items or suppliers for All Team franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall purchase and/or lease all products, services, supplies, computer software and hardware, equipment and materials required for the operation of the business from manufacturers, suppliers, or distributors designated by ATFC, or from other suppliers who meet ATFC's specifications and are able to provide products and equipment in accordance with the standards as to quality, appearance and service, and who adequately demonstrate their ability to supply the franchise needs in a timely and reliable manner. Specification of a supplier may be conditioned on requirements relating to, among other things, frequency of delivery, standards of services, including prompt attention to complaints, as well as payments, contributions, or other consideration to ATFC or its affiliates, any advertising fund and/or otherwise, and may be temporary, in each case in ATFC's reasonable discretion. ATFC may, from time-to-time withhold, condition and/or revoke ATFC's approval of particular items or suppliers in its reasonable discretion. ATFC or its affiliates may receive rebates, commissions, promotional allowances and other benefits from suppliers in relation to items purchased by FRANCHISEE and other franchisees. ATFC has the right to condition or revoke Franchisee's right to participate in any supplier programs if FRANCHISEE is in default under this Agreement. Some of the approved suppliers may be affiliated with ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team (ATFC) has the authority to withhold, condition, or revoke approval of particular items or suppliers for its franchisees. This decision is made at All Team's discretion.
This means that as an All Team franchisee, you are required to purchase or lease products, services, supplies, software, hardware, equipment, and materials from manufacturers, suppliers, or distributors that All Team designates. You can also use other suppliers if they meet All Team's specifications regarding quality, appearance, and service, and can reliably supply the franchise's needs.
All Team can change supplier specifications based on factors like delivery frequency, service standards, and payments or contributions to All Team or its affiliates. All Team may also receive benefits such as rebates or commissions from suppliers based on franchisee purchases. All Team can also revoke a franchisee's right to participate in supplier programs if the franchisee is in default under the Franchise Agreement.