factual

How are deadlocks in the All Team NAC resolved?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

The NAC shall review and approve or disapprove any long-range marketing plans that we or other franchisees shall develop and the NAC may develop its own long range marketing plans. After a marketing plan has been approved by the NAC, we shall implement the plan without further review by the NAC. We reserve the right, in its sole discretion, to establish and modify, from time to time, the duties, organization, form, manner of operation, membership, methods of member selection, and all other aspects of the NAC (other than eligibility for voting) pursuant to such governing documents as we may prepare; provided, however that members elected by franchisees shall in no event be less than 50% of the members of the NAC. Any deadlocks in the NAC shall be resolved by the decision of the Director of the NAC.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, any deadlocks within the National Advertising Council (NAC) are resolved by the decision of the Director of the NAC. The NAC is responsible for reviewing and approving long-range marketing plans developed by All Team or its franchisees, and it can also develop its own marketing plans. Once a plan is approved by the NAC, All Team will implement it without further review.

The Director of the NAC, who is responsible for resolving deadlocks, is an employee, officer, or director of All Team. The NAC consists of four members, with franchisee members elected annually by all franchisees in full compliance with their Franchise Agreement, based on one vote per agency. Franchisee-elected members must constitute at least 50% of the NAC membership.

This structure ensures that while franchisees have a significant voice in marketing strategy through their elected representatives, All Team retains ultimate control in the event of disagreements. Prospective franchisees should consider the implications of this structure, understanding that the franchisor's representative has the final say in resolving deadlocks, which could impact the implementation of marketing plans and strategies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.