Is the All Team franchisee's exclusive territory subject to any exceptions?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Area. Subject to the terms and conditions of this Agreement, ATFC hereby grants to FRANCHISEE the right and license to use the Systems and Marks in connection with the operation of one Agency in the Area described in Exhibit I ("Area") under the terms and conditions of this Agreement.
Subject to Section II.C (National/Regional Accounts), ATFC agrees that during the term of this Agreement, so long as FRANCHISEE is not in default under this Agreement, ATFC shall not operate or license or franchise any other person or entity the right to operate an ATFC agency in the Area. The Agency shall be operated by FRANCHISEE at office which must be located within the limits or boundaries of the Area. FRANCHISEE has the right to select the site of the office for the Agency, subject to the prior written consent of ATFC. FRANCHISEE shall not open or close any office nor change the location of any office within the Area without first securing written consent of ATFC. Notwithstanding the foregoing, if, in ATFC's sole opinion, the Area is too large to service through only 1 office, ATFC may require FRANCHISEE to open additional offices all within the limits or boundaries of the Area. In such event, the number of offices which need to be established in the Area and the timing of establishing these offices will be described in Exhibit I.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee's exclusive territory is subject to certain exceptions. All Team grants the franchisee the right to operate one agency within a defined area, as described in Exhibit I of the Franchise Agreement.
However, this exclusivity is subject to Section II.C, concerning national/regional accounts. All Team retains the right to operate, license, or franchise other entities within the franchisee's area for national or regional accounts, provided the franchisee is not in default of the agreement. The franchisee must operate the agency at an office located within the specified boundaries and needs All Team's written consent to select the site, open, close, or relocate any office within the area.
Additionally, if All Team believes the assigned area is too large to be effectively serviced by a single office, it may require the franchisee to open additional offices within the area's limits. The number and timing of these additional offices will be detailed in Exhibit I. These stipulations mean that while franchisees are granted an area, All Team retains considerable control and can modify the exclusivity based on business needs and account types.