Is an All Team franchisee required to sign a new franchise agreement upon renewal?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | OTHER AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the franchise term | Section IV of the Franchise Agreement; Section III of the Funding Agreement; and Section III of the Processing Agreement | 10 years from signing the Franchise Agreement. Funding Agreement and Processing Agreement are 3 years from execution. |
| b. Renewal or extension | Section IV of the Franchise Agreement; Section III of the Funding Agreement; Section III of the Processing Agreement | 2 additional terms for 10 years each for the Franchise Agreement. Funding Agreement and Processing Agreement automatically renew for additional 1 year terms. |
| PROVISION | SECTION IN FRANCHISE AGREEMENT OR OTHER AGREEMENT | SUMMARY |
| c. Requirement for franchisee to renew or extend | Section IV of the Franchise Agreement | Give notice, sign new franchise agreement that may contain terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements and territorial rights, sign a release, and pay fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are required to sign a new franchise agreement when renewing their franchise. The new agreement may contain terms and conditions that are significantly different from the previous agreement.
This requirement means that franchisees should carefully review the new franchise agreement to understand any changes to fees, territorial rights, or other important terms. It is not uncommon in the franchise industry for franchisors to update their franchise agreements periodically to reflect changes in the market, legal requirements, or the franchisor's business model.
In addition to signing a new franchise agreement, All Team also requires franchisees to provide notice of their intent to renew, sign a release, and pay a fee. These conditions are typical in franchise renewal processes, as they allow the franchisor to ensure that the franchisee is in good standing and committed to the brand. Prospective franchisees should factor in these potential changes and costs when considering the long-term investment in an All Team franchise.