Is an All Team franchisee prohibited from soliciting customers of ATFC after termination?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE will not, directly or indirectly, on its own behalf or on the behalf of others, solicit or service for, or divert or appropriate to any Similar Business, or attempt to solicit, divert or appropriate to or from any Similar Business, any person or entity which is or was at any time during the preceding two (2) year period a customer of FRANCHISEE, ATFC or any affiliate or licensee or franchisee of ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting customers after termination. Specifically, for two years after termination, expiration, or transfer of the Franchise Agreement, the franchisee cannot solicit or service any person or entity that was a customer of the franchisee, All Team, or any of its affiliates or franchisees during the two years preceding the termination. This restriction applies unless the franchisee obtains prior written consent from All Team. This non-solicitation clause prevents a former franchisee from leveraging their knowledge and relationships gained during the franchise term to unfairly compete with All Team.
This provision is designed to protect All Team's customer base and goodwill. It ensures that departing franchisees do not take clients with them to a competing business, which could significantly harm All Team's revenue and market position. The clause covers not only direct solicitation but also attempts to divert or appropriate customers to a similar business.
For a prospective franchisee, this means that upon leaving the All Team system, they will be unable to actively pursue business from clients they served as an All Team franchisee, as well as clients of the franchisor and other franchisees. This restriction extends for a period of two years and applies within the franchisee's agency area and the area of any other All Team agency. Therefore, franchisees need to consider this limitation when evaluating the long-term viability of the franchise and their future career options after the franchise term.