What constitutes an assignment of the All Team Processing Agreement requiring ATFC's consent?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Processing 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, which consent shall not unreasonably be withheld.
For all purposes of this Processing 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 Processing Agreement requiring such consent.
Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement is personal to the franchisee (USER) and cannot be assigned or transferred, either voluntarily or by law, without All Team Franchise Corporation's (ATFC) prior written consent. ATFC's consent will not be unreasonably withheld.
Specifically, the transfer of the majority of the franchisee's equity 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 Processing Agreement. This requires ATFC's consent.
Furthermore, any assignment of the Processing Agreement must occur in conjunction with a corresponding assignment under the Franchise Agreement. This means that if a franchisee seeks to transfer their franchise, they must also seek to transfer the Processing Agreement simultaneously, and both transfers are subject to All Team's approval.