For All Team, what entities are considered to benefit from the agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. "FRANCHISEE" shall be deemed to include: (a) those persons and their spouses owning any interest in a corporate franchisee or a limited liability company; (b) all partners and their spouses owning any interest in a partnership franchisee; (c) the individual who owns a sole proprietorship franchisee and his or her spouse; and (d) the guarantors of this Agreement.
For purposes of determining ownership in a franchise, the interests owned by a husband and wife shall be considered one interest, and both husband and wife shall be obligated hereunder, regardless of whether the interest is owned by just one spouse or both spouses.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the definition of "FRANCHISEE" includes several entities. Specifically, it encompasses individuals and their spouses who own any interest in a corporate franchisee or a limited liability company. This means that if a franchise is owned by a corporation or LLC, the owners and their spouses are considered part of the franchisee entity. The definition also includes all partners and their spouses who own any interest in a partnership franchisee. Furthermore, the individual who owns a sole proprietorship franchisee and their spouse are included, as are the guarantors of the Franchise Agreement.
This comprehensive definition has significant implications for prospective All Team franchisees. It means that spouses of owners or partners are also obligated under the Franchise Agreement, regardless of whether they directly own an interest or not. This ensures that the franchisor has recourse to both the owner and their spouse for any obligations under the agreement. Additionally, the inclusion of guarantors means that those who guarantee the franchisee's obligations are also considered part of the franchisee entity and are bound by the terms of the agreement.
For individuals considering an All Team franchise, it is crucial to understand that the obligations extend beyond the primary owner to include spouses and guarantors. This may affect personal liability and financial responsibilities. Prospective franchisees should carefully review the Franchise Agreement and seek legal counsel to fully understand the implications of this broad definition of "FRANCHISEE."