factual

Is an All Team franchisee required to assign customer contracts to All Team upon request?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

  • D.

Customer Complaints.

If FRANCHISEE receives a complaint from a customer which cannot be resolved within five (5) business days, FRANCHISEE shall promptly notify ATFC.

FRANCHISEE agrees that ATFC shall have the right to intervene in and resolve any such unresolved customer complaints, and FRANCHISEE agrees to be bound by any decision made by ATFC regarding a resolution of any such complaints, at the sole expense of FRANCHISEE.

Source: Item 22 — CONTRACTS (FDD pages 33–34)

What This Means (2025 FDD)

Based on the 2025 All Team Franchise Disclosure Document, if an All Team franchisee receives a complaint from a customer that cannot be resolved within five business days, the franchisee must promptly notify All Team. All Team then has the right to intervene and resolve the complaint. The franchisee agrees to be bound by All Team's decision regarding the resolution, and the franchisee will bear the expense. This indicates that while franchisees handle initial customer interactions, All Team retains the authority to step in and dictate the resolution of unresolved issues. However, the FDD does not explicitly state that franchisees are required to assign customer contracts to All Team upon request.

While the FDD outlines All Team's right to intervene in customer complaints, it does not specify whether this intervention extends to requiring the assignment of customer contracts. The document details the franchisee's obligations to adhere to All Team's standards and procedures, maintain ethical conduct, and comply with all applicable laws. It also discusses the transferability of the franchise interest under various circumstances, such as death, incapacity, or a desire to sell the franchise. However, none of these sections explicitly address the assignment of customer contracts to All Team.

Therefore, a prospective All Team franchisee should seek clarification from All Team regarding the circumstances under which customer contracts might be assigned to All Team. Understanding All Team's policies on customer contract assignment is crucial for assessing the level of control All Team exerts over customer relationships and the potential financial implications for the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.