Is a franchisee's agreement to comply with All Team's supplier requirements a material condition of the franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently ATFC is the only approved supplier of payroll and billing processing services, payroll funding, and sublicensing the Software to FRANCHISEE. FRANCHISEE acknowledges that its agreement to comply with the foregoing is a material condition upon which this franchise is granted. In the event that ATFC or its affiliates are unable to offer any of these services to FRANCHISEE, ATFC may designate an approved supplier or suppliers for these services upon written notice to FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee's agreement to comply with the franchisor's requirements regarding payroll and billing processing services, payroll funding, and software sublicensing is a material condition of the franchise. Specifically, All Team designates itself as the only approved supplier for these services initially.
This means that franchisees must use All Team for these essential services unless All Team is unable to provide them. In that case, All Team has the right to designate another approved supplier via written notice to the franchisee.
This condition underscores the importance All Team places on maintaining control over these key operational aspects. It also means that failure to comply with these supplier requirements could be grounds for declaring a default of the franchise agreement.