What documentation must an All Team franchisee provide to ATFC regarding the designated operating partner, member, or shareholder?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, if FRANCHISEE receives a bona fide, executed, written offer to acquire the franchise (or any stock in a corporate FRANCHISEE, or interest in a partnership or limited liability FRANCHISEE) from a responsible, fully disclosed purchaser, FRANCHISEE must submit a copy of the offer to ATFC.
FRANCHISEE must also provide ATFC with any other information it requests to evaluate the offer.
ATFC has the right, exercisable by delivering written notice to the FRANCHISEE within thirty (30) days from the date of last delivery to ATFC of the offer and any other documents requested by ATFC, to acquire the Interest for the price and on the terms and conditions contained in the offer.
Regardless of the terms of the offer, however, ATFC may, in its discretion: substitute cash for any form of payment proposed in the offer; require the FRANCHISEE to include customary warranties and representations in the purchase agreement; and structure the transaction as an "asset purchase", rather than a "stock purchase".
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee receives a legitimate offer to acquire the franchise, including stock in a corporate franchisee or interest in a partnership or limited liability franchisee, they must provide All Team with a copy of the offer. Additionally, the franchisee must furnish All Team with any other information requested to evaluate the offer.
This requirement allows All Team to assess the proposed transfer and exercise its right of first refusal. All Team has 30 days from the date of the last delivery of the offer and any other requested documents to notify the franchisee in writing of its decision to acquire the interest under the same terms and conditions.
All Team retains some discretion regarding the terms, even if it matches the offer. All Team can substitute cash for any proposed payment method, require customary warranties and representations in the purchase agreement, and structure the transaction as an asset purchase rather than a stock purchase. This ensures All Team maintains control over who becomes a franchisee and protects its interests in the franchise system.