What constitutes a transfer of the All Team USER's equity for the purposes of the Processing Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a transfer of equity under the Processing Agreement occurs when either of the following conditions are met: a transfer of the majority of the equity of the USER to individuals other than the current owners, or a transfer of a substantial portion of the Business in one or more transactions.
This means that if a franchisee (USER) sells or transfers more than 50% of their ownership in the All Team franchise to new owners, it is considered an assignment of the Processing Agreement. Similarly, if the franchisee transfers a significant part of the business assets or operations, even without a change in ownership, it also triggers the assignment clause.
In both scenarios, the franchisee must obtain prior written consent from All Team for the assignment to be valid. This requirement ensures that All Team maintains control over who operates the franchise and that the new operator meets their standards. Additionally, any assignment of the Processing Agreement must occur alongside a corresponding assignment of the Franchise Agreement, indicating that both agreements are linked and must be transferred together.