What compliance is required for a transfer of an All Team franchise to be approved?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC will approve a sale, Transfer or change in ownership under the following conditions:
Governmental Compliance.
The Transfer is conducted in compliance with applicable laws and regulations and the transferee has all permits and licenses necessary to operate the Agency;
Prior Compliance.
The FRANCHISEE has performed its obligations and duties under this Agreement and FRANCHISEE is not in default under this Agreement, or any other agreement with ATFC;
Payments.
The transferee has satisfied all of its obligations to ATFC, ATFC's affiliates and suppliers under this Agreement and all other agreements it has with ATFC;
Release.
The FRANCHISEE, including all officers, directors and shareholders (as well as all guarantors under this Agreement) must execute a general release, in the form which ATFC approve, of any and all claims against ATFC, ATFC's affiliates, and their respective officers, directors employees and agents, to the extent permitted by law;
Requirements of Transferee.
The transferee meets the established standards for new franchisees, is of good moral character, has a good credit rating, sufficient financial resources to operate the business and competent qualifications.
The transferee must execute a new Franchise Agreement which may contain different terms and conditions than this Agreement and a Guaranty and Assumption of Obligations;
Transfer Fee.
The transferee pays a transfer fee of 50% of the then current Franchise Fee in lieu of the Franchise Fee;
Assumption of Liabilities.
The transferee agrees to assume all liabilities and obligations from the prior operation of the Agency, including the lease and complies with other reasonable requirements ATFC may impose;
Completion of Training.
The transferee and/or transferee's management team, including a designated manager, successfully complete the initial training program;
Update and Remodel Agency.
The transferee updates and remodels the Agency to comply with the then current standards;
Continuing Liability.
If ATFC approves an assignment, ATFC shall have the discretion to require FRANCHISEE and the guarantors to remain liable for the full and faithful performance of the obligations of the assignee; and
Economically Reasonable Terms.
Although ATFC will not be required to determine the value of business upon a Transfer, if in ATFC's reasonable judgment, the purchase price or terms of the sale are not economically feasible to the proposed assignee, ATFC can withhold its consent to such an assignment or Transfer.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a sale, transfer, or change in ownership of an All Team franchise is contingent upon meeting several conditions. The transfer must comply with all applicable laws and regulations, and the transferee must possess all necessary permits and licenses to operate the agency. The franchisee must have fulfilled all obligations and duties under the existing agreement and not be in default of any agreements with All Team. All financial obligations to All Team, its affiliates, and suppliers must be satisfied. The franchisee must also provide a general release of claims against All Team and related parties.
The transferee must meet the standards for new franchisees, demonstrating good moral character, a good credit rating, sufficient financial resources, and competent qualifications. The transferee is required to execute a new Franchise Agreement, which may have different terms than the original, along with a Guaranty and Assumption of Obligations. A transfer fee equal to 50% of the current franchise fee is required. The transferee must agree to assume all liabilities and obligations from the prior operation of the agency, including the lease, and comply with any other reasonable requirements imposed by All Team.
Furthermore, the transferee and/or their management team must successfully complete the initial training program. The agency must be updated and remodeled to meet current standards. All Team retains the discretion to require the franchisee and guarantors to remain liable for the assignee's obligations. All Team can withhold consent if the purchase price or terms of the sale are not economically feasible for the proposed assignee. These stipulations ensure that any transfer maintains the integrity and standards of the All Team franchise system.