Must an All Team franchisee or its principal owner participate personally in the direct operation of the Agency?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Actual Participation/Best Efforts. FRANCHISEE or its principal owner agrees to participate personally in the direct operation of the Agency and devote substantially all of the Agency business time and efforts to the direct operation of the Agency. If FRANCHISEE is a partnership, limited liability company or a corporation, FRANCHISEE must designate an operating partner, member or shareholder who (a) shall successfully complete the Initial Training Program; (b) throughout the term of this Agreement shall devote full working time and best efforts in the day-to-day operations of the Agency and shall keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business of the Agency; and (c) shall have been granted general management power and authority over the business affairs of the Agency including, without limitation, the power and authority to act solely on behalf of and legally bind the FRANCHISEE. Upon such designation, FRANCHISEE shall provide ATFC with a certified copy of the action of FRANCHISEE granting such authority. FRANCHISEE shall keep ATFC informed at all times of the identity of any manager of the Agency. FRANCHISEE agrees to attend and complete, and to cause all employees of FRANCHISEE who participate in the operation, marketing or management of the Agency (as designated by ATFC) to attend and complete, all training provided to FRANCHISEE by ATFC pursuant Section VII.A. and B. of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, either the franchisee or the principal owner must participate personally in the direct operation of the All Team agency. They must also devote substantially all of their business time and efforts to the direct operation of the agency.
If the All Team franchisee is a partnership, limited liability company, or a corporation, they must designate an operating partner, member, or shareholder. This designated individual must successfully complete the initial training program. Throughout the term of the agreement, they must devote their full working time and best efforts to the day-to-day operations of the agency. This person must also remain free from conflicting enterprises or any other activities that would be detrimental to or interfere with the business of the agency.
Furthermore, the designated individual must have been granted general management power and authority over the business affairs of the agency, including the power and authority to act solely on behalf of and legally bind the franchisee. The franchisee is required to provide All Team with a certified copy of the action granting such authority and must keep All Team informed at all times of the identity of any manager of the agency. The franchisee also agrees to ensure that all employees who participate in the operation, marketing, or management of the agency attend and complete all training provided by All Team.