May an All Team franchisee face competition from outlets owned by All Team?
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 outlets that All Team owns. While franchisees are granted the right to operate within a designated area, All Team retains the right to establish company-owned, affiliate-owned, or franchised outlets outside of the franchisee's area. Furthermore, All Team and its affiliates have the absolute right to establish company-owned, affiliate-owned, or franchised or licensed outlets which do not use the All Team System or Marks anywhere they desire, including within the franchisee's designated area.
This means that an All Team franchisee's territory is not exclusive, and they may face competition from other franchisees, company-owned outlets, or other channels of distribution that All Team controls. All Team is not obligated to compensate franchisees if they exercise their right to establish other outlets or channels of distribution.
All Team also retains the right to engage in other business activities and market products, including those with All Team's Marks, through alternative distribution channels at any location without any obligation to its franchisees. While All Team has not established plans to operate businesses similar to the franchised agency under different trade names or trademarks, they retain the right to do so in the future. This lack of an exclusive territory is a common practice in franchising, but prospective franchisees should carefully consider the potential impact of competition from All Team and other channels before investing.