Does the All Team franchise agreement state that modifications to the system may require further expenditures by the franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
copy of the Confidential Operations Manual is kept current and up-to-date; and, in the event of any dispute as to the contents of the Confidential Operations Manual, the terms of the master copy of the Confidential Operations Manual maintained by ATFC shall be controlling.
XV. CHANGES TO MANUAL AND SYSTEMS
FRANCHISEE understands and agrees that due to changes in competitive circumstances, presently unforeseen changes in the needs of customers, and/or presently unforeseen technological innovations, the Systems may need to undergo changes in order that it best serve the interests of the FRANCHISEE, ATFC and the franchise system. Accordingly, the FRANCHISEE expressly understands and agrees that ATFC may from time to time change the components of the Systems, including, but not limited to, altering the computer system including software and hardware, services, methods, standards, form, policies and procedures of the Systems; adding to, deleting from, or modifying those products and services which the Agency is authorized to offer; and, changing, improving or modifying the Marks and making changes to the Manual. Such changes may be sent to FRANCHISEE by supplemental bulletins, notices or by e-mail (the "Supplements"), all of which are a part of the Manual. Subject to the other provisions of this Agreement, FRANCHISEE expressly agrees to abide by any such modifications, changes, additions, deletions and alterations and acknowledge that such modifications, changes, additions, deletions and alterations will require further expenditures by FRANCHISEE. Further, FRANCHISEE agrees to execute any and all documents necessary to effectuate changes including but not limited to computer purchase and leases and software license agreements and maintenance agreements. Changes in software programs or other changes in the System will require FRANCHISEE to upgrade its computer system and incur costs in obtaining other or additional computer hardware, equipment, and software. ATFC agrees to impose such requirements and changes in a reasonable, non-discriminatory manner among other franchisees.
XVI. TRANSFERABILITY OF INTEREST
- A. By ATFC. ATFC is free to assign all of its rights and obligations under this Agreement, and upon such assignment ATFC shall be relieved of all liability under this Agreement, and all rights and obligations shall accrue to the successor or assignee.
- B. By FRANCHISEE. ATFC has the right to reasonably disapprove any person or entity that would have actual, legal or effective control over the Agency and shall have the right to approve any Transfer. Consent to a Transfer shall not be deemed a waiver of ATFC's right to consent to any subsequent Transfers.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchise agreement stipulates that modifications to the system or Confidential Operations Manual may require further expenditures by the franchisee. All Team may change components of the systems due to competitive circumstances, changes in customer needs, or technological innovations. These changes may include alterations to the computer system (software and hardware), services, methods, standards, form, policies, and procedures. All Team may also add to, delete from, or modify the products and services the agency is authorized to offer, change the marks, and make changes to the manual.
These changes will be communicated to the franchisee through supplemental bulletins, notices, or email, which are considered part of the manual. The franchisee expressly agrees to abide by these modifications, changes, additions, deletions, and alterations, acknowledging that they may require further expenditures. For example, changes in software programs or other system changes may require the franchisee to upgrade its computer system and incur costs in obtaining other or additional computer hardware, equipment, and software.
All Team agrees to impose such requirements and changes in a reasonable, non-discriminatory manner among other franchisees. The franchisee is responsible for ensuring their copy of the Confidential Operations Manual is current and up-to-date. In case of any dispute regarding the contents of the manual, the terms of the master copy maintained by All Team will be controlling. The franchisee expressly agrees to comply with each modification, addition, or deletion of the system or Confidential Operations Manual at its sole cost and expense, acknowledging that such changes may be necessary and may involve the expenditure of substantial sums of money.