Does the All Team franchise agreement prohibit soliciting employees of other All Team franchisees without their consent?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE will not, either directly or indirectly, on its own behalf or on the behalf of others, solicit, divert or hire away, or attempt to solicit, divert or hire away, to any Similar Business any person employed by ATFC or its affiliates or licensees, nor will FRANCHISEE solicit, divert or hire away or attempt to solicit, divert or hire away to the Agency or any Similar Business any such employee of any licensee or franchisee of ATFC without the prior written consent of such licensee or franchisee of ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 All Team Franchise Disclosure Document, the franchise agreement addresses the solicitation of employees of other All Team franchisees. Specifically, it states that a franchisee is prohibited from soliciting, diverting, or hiring away any employee of another All Team licensee or franchisee to the franchisee's agency or any similar business without obtaining prior written consent from that other licensee or franchisee. This restriction applies both directly and indirectly, whether on behalf of the franchisee or others.
This provision protects All Team franchisees from losing their employees to other franchisees within the All Team system. It ensures that franchisees cannot actively recruit or poach employees from each other without permission. This is a common clause in franchise agreements to maintain stability and prevent internal competition for staff.
For a prospective All Team franchisee, this means they must obtain written consent from another franchisee before attempting to hire their employees. Failure to do so would be a breach of the franchise agreement and could lead to penalties or legal action from All Team. This requirement promotes a more collaborative environment among franchisees, as it encourages communication and respect for each other's businesses.
This clause remains in effect during the term of the franchise agreement. After termination of the agreement, other non-compete clauses apply, but this specific restriction on soliciting employees of fellow franchisees ceases, unless otherwise specified in a separate agreement or addendum.