Who decides whether All Team will operate the franchise business in the franchisee's absence?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Operation of Franchise Because of FRANCHISEE's Inability. In order to prevent any interruption of the franchise business which would cause harm to the business, if FRANCHISEE is unable to operate the business for any reason whatsoever, FRANCHISEE authorizes ATFC and its agents and affiliates to operate the business for so long as ATFC deems necessary and practical. All income from the operation of the business shall be kept in a separate account, and the expenses of the business, including reasonable compensation and expenses of ATFC and its agents, shall be charged to said account. Nothing contained herein shall be construed to require ATFC to operate the business in the case of FRANCHISEE's inability to operate same, and the rights set forth herein may be exercised in the sole and absolute discretion of ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) has the authority to operate the franchise business if the franchisee is unable to do so for any reason. This is intended to prevent any interruption of the business that could cause harm.
The FDD specifies that All Team and its agents and affiliates are authorized to operate the business for as long as All Team deems necessary and practical. All income generated during this period will be kept in a separate account, and the expenses of the business, including reasonable compensation and expenses for All Team and its agents, will be charged to that account.
However, the FDD clarifies that All Team is not required to operate the business in the franchisee's absence. The decision to operate the business under these circumstances is at the sole and absolute discretion of All Team. This clause protects the brand and ensures continuity of operations, but it also places the franchisee at the mercy of All Team's decision-making in times of personal difficulty.