Can an All Team franchisee assign or transfer the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Funding Agreement is personal to USER and shall not be assignable or transferable by USER, in whole or in part, either voluntarily or by operation of law, except with the prior written consent of ATFC with a copy to Centennial, which consent shall not unreasonably be withheld.
For all purposes of this Funding Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Funding Agreement requiring such consent.
Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement and the Processing Agreement.
This Funding Agreement is fully assignable by ATFC.
- F. Successors and Assigns. This Funding Agreement shall be binding upon and shall inure to the benefit of ATFC and USER, and their permitted successors and assigns.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement is personal to the franchisee (referred to as USER in the document) and cannot be assigned or transferred without prior written consent from All Team Franchise Corporation (ATFC) and Centennial. This consent from ATFC and Centennial cannot be unreasonably withheld.
For a franchisee to transfer the majority of their equity to new owners or transfer a substantial portion of the business, it is considered an assignment of the Funding Agreement. This also requires prior written consent from ATFC and Centennial. Any assignment of the Funding Agreement must occur alongside a corresponding assignment of both the Franchise Agreement and the Processing Agreement.
However, the FDD states that All Team has the right to fully assign the Funding Agreement to another party. The Funding Agreement is binding upon and benefits both All Team and the franchisee, as well as their permitted successors and assigns.
This means that while an All Team franchisee has limited ability to transfer the Funding Agreement, All Team retains the right to assign the agreement as it sees fit. A prospective franchisee should carefully consider these terms and seek legal counsel to fully understand the implications of these restrictions and rights before entering into the agreement.