What is the dependency between the termination/expiration of the agreement and All Team's right to purchase personal property?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. ATFC's Right to Purchase Personal Property. After the termination or expiration of this Agreement, but not upon an approved Transfer, ATFC shall have the right, but not the obligation, to purchase all of FRANCHISEE's equipment, inventory, supplies and other personal property used in connection with the operation of the business. Notwithstanding the foregoing, FRANCHISEE has the right to keep any and all personal effects and furnishings of sentimental value to FRANCHISEE, which FRANCHISEE elects to exclude. The purchase price shall be at fair market value (less the amount of any liens on the property), which shall be established (if the parties are unable to agree) by the average of two independent appraisals. FRANCHISEE and ATFC shall each select an independent appraiser within thirty (30) days after termination or expiration of this Agreement. If either party fails to select an appraiser within such time period, the appraised value shall be determined by the one appraiser selected. ATFC shall have thirty (30) days after the fair market value is determined as above, to exercise the rights granted hereunder, and shall thereafter have an additional thirty (30) days to pay for the property it desires to purchase.
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 right to purchase a franchisee's personal property only after the termination or expiration of the Franchise Agreement. This right does not apply if the franchise is transferred to a new owner with All Team's approval.
Specifically, after the agreement ends, All Team has the option, but not the obligation, to buy the franchisee's equipment, inventory, supplies, and other personal property used in the business's operation. However, the franchisee can keep personal effects and furnishings of sentimental value.
The purchase price for the personal property will be the fair market value, minus any liens on the property. If All Team and the franchisee cannot agree on a fair price, it will be determined by averaging two independent appraisals. Each party selects an appraiser within 30 days of the termination or expiration date. If one party fails to select an appraiser within that timeframe, the value will be determined by the single appraiser selected. All Team then has 30 days after the fair market value is determined to decide whether to exercise its right to purchase the property, and another 30 days to pay for the property it chooses to buy.