Does the All Team franchise agreement specify any financial thresholds related to software licensing?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ENTATION OR OTHER MATERIAL FURNISHED HEREUNDER OR ANY COMPONENT THEREOF, AND THERE ARE EXPRESSLY EXCLUDED ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT THERETO. ATFC SHALL HAVE NO LIABILITY FOR CONSEQUENTIAL, EXEMPLARY, INCIDENTAL OR PUNITIVE DAMAGES.
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- FRANCHISEE shall bear all costs of licensing, installation, operation, maintenance, and upgrading the Software. In connection therewith, FRANCHISEE will pay ATFC a weekly Technology as described in Section V.E above.
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Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are responsible for all expenses related to the software. This includes the costs of licensing, installation, operation, maintenance, and upgrades. Franchisees must also pay All Team a weekly technology fee, though the specific amount is detailed in Section V.E of the agreement, which is not provided in the excerpt.
All Team retains the right to modify the software at any time, and franchisees may be required to update their licensed software at their own expense, potentially needing to sign new licensing agreements. Furthermore, All Team can mandate modifications, enhancements, or replacements to the software, again at the franchisee's cost. All Team also has unlimited rights to remotely access the software and use the information contained within it for any purpose they deem appropriate.
These stipulations mean that franchisees must budget for ongoing technology expenses and be prepared for potential unexpected costs if All Team decides to change or upgrade the software. The franchisee does not own the software, but rather has a license to use it. The franchisee also bears the risk of increased costs associated with software changes or upgrades implemented by All Team. Prospective franchisees should clarify the typical range and frequency of these technology-related expenses and the details of the weekly technology fee with All Team before signing the agreement.