May an All Team franchisee face competition from other franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for National/Regional Accounts described below, we agree that during the term of the Franchise Agreement, so long as you are not in default under the Franchise Agreement, we will not operate or license any other person or entity to operate an Agency located within the Area. We and our affiliates have the absolute right to establish company-owned, affiliate-owned or franchised or licensed outlets or any other operation using the System and Marks at any location outside of the Area. We and our affiliates have the absolute right to establish company-owned, affiliate-owned or franchised or licensed outlets which do not use the System or Marks anywhere we desire, including within the Area. We and our affiliates may also market products, including products with the Marks, through alternative channels of distributions and engage in other business activities at any location without obligation to its franchisees. We are not required to pay you if we or our affiliates exercise any of the rights specified above. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own or from other channels of distribution or competitive brands that we control.
We have not established and do not operate, and have not formulated any plans or policies to establish or operate or to franchise others to operate, any business offering services similar to or competitive with those to be offered for sale by franchisees of your Agency under different trade names or trademarks, or of selling other services or products utilizing the Marks, but we retain the right to do so.
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees may face competition from various sources. While All Team grants franchisees an area, typically a Metropolitan Statistical Area (MSA), where the franchisor agrees not to operate or license another agency, this protection has exceptions. All Team and its affiliates retain the right to establish outlets outside the franchisee's area. More significantly, they can establish company-owned, affiliate-owned, or franchised outlets that do not use the All Team system or marks anywhere, including within the franchisee's designated area. This means a franchisee could face direct competition from a similar business operated by All Team or its affiliates under a different brand.
Furthermore, All Team and its affiliates can market products, even those with All Team's marks, through alternative distribution channels within the franchisee's area without any obligation to compensate the franchisee. The FDD explicitly states that franchisees will not receive an exclusive territory and may face competition from other franchisees, outlets owned by All Team, or other distribution channels or competitive brands controlled by All Team.
All Team also retains the right to engage in businesses offering similar or competitive services under different trade names or trademarks, although they state they have no current plans to do so. This clause allows All Team future flexibility to introduce competing concepts. Therefore, while franchisees receive a designated area, the agreement contains numerous exceptions that could lead to significant competition within that area.