Is an All Team franchisee allowed to incur obligations or indebtedness in ATFC's name?

According to All Team's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from incurring any obligations or indebtedness in All Team's name. The franchisee must conduct all financial dealings and obligations solely in the franchisee's own name. This is a standard practice in franchising, intended to keep the financial liabilities of the franchisee separate from those of the franchisor.

This requirement protects All Team from being held liable for the debts or financial missteps of its franchisees. It also reinforces the independent contractor status of the franchisee, as highlighted in the FDD, where it states that All Team and the franchisee are independent contractors and that neither party can make agreements or representations on behalf of the other.

Furthermore, the franchisee is required to indemnify All Team against any liabilities, losses, or damages arising from the franchisee's actions or omissions. This indemnification clause underscores the financial and legal separation between the franchisor and franchisee, ensuring that the franchisee bears the responsibility for their own business operations.

In addition to the franchisee's independent financial obligations, the FDD also includes a 'Guaranty and Assumption of Obligations' section, which requires guarantors to personally guarantee the franchisee's debts and obligations to All Team. This further protects All Team's financial interests and ensures that there are parties responsible for the franchisee's financial commitments.