What is the condition for an All Team franchisee to assign the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Funding Agreement is personal to USER and shall not be assignable or transferable by USER, in whole or in part, either voluntarily or by operation of 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.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee (referred to as USER) cannot assign or transfer the Funding Agreement without prior written consent from All Team and Centennial Bank. This consent from All Team will not be unreasonably withheld.
For an All Team franchisee, this means that if they wish to sell their business or transfer ownership, they must obtain approval from All Team and Centennial Bank to transfer the Funding Agreement to the new owner. The transfer of a majority of the equity in the All Team franchise to individuals other than the current owners, or the transfer of a substantial portion of the business in one or more transactions, is considered an assignment of the Funding Agreement, which also requires consent.
Furthermore, any assignment of the Funding Agreement must occur alongside a corresponding assignment of both the Franchise Agreement and the Processing Agreement. This indicates that all three agreements are interconnected and must be transferred together to ensure a smooth transition and continued operation of the All Team franchise under new ownership.
This requirement protects All Team by ensuring that any new franchisee taking over the Funding Agreement meets their standards and is capable of fulfilling the obligations outlined in the agreement. It also protects Centennial Bank, as they need to be confident in the financial stability and operational capabilities of the new franchisee who will be receiving funding. This is a fairly standard practice in franchising, as franchisors typically want to maintain control over who operates under their brand and uses their resources.