What is the financial responsibility of the transferee in an All Team franchise transfer?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ee must execute a new Franchise Agreement which may contain different terms and conditions than this Agreement and a Guaranty and Assumption of Obligations;
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- Transfer Fee. The transferee pays a transfer fee of 50% of the then current Franchise Fee in lieu of the Franchise Fee;
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- Assumption of Liabilities. The transferee agrees to assume all liabilities and obligations from the prior operation of the Agency, including the lease and complies with other reasonable requirements ATFC may impose;
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- Completion of Training. The transferee and/or transferee's management team, including a designated manager, successfully complete the initial training program;
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- Update and Remodel Agency.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a transferee assumes several financial responsibilities when taking over an All Team franchise. The transferee must pay a transfer fee amounting to 50% of the then-current franchise fee, instead of paying the full franchise fee. As of the FDD date, the standard franchise fee is $42,500, so the transfer fee would be $21,250. The transferee also agrees to take on all liabilities and obligations from the previous operation of the agency, including the lease agreements.
In addition to the transfer fee and assumed liabilities, the transferee is responsible for updating and remodeling the agency to meet All Team's current standards. All Team also has the right to withhold consent to the transfer if the purchase price or terms of the sale are not economically feasible for the proposed transferee, in All Team's reasonable judgment.
These financial obligations ensure that the new franchisee is committed to maintaining the standards and financial health of the All Team franchise. Prospective franchisees should carefully consider these costs and requirements when planning a franchise transfer.