Can All Team franchisees use suppliers that meet ATFC's specifications but are not designated by ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ts agents, shall be charged to said account. Nothing contained herein shall be construed to require ATFC to operate the business in the case of FRANCHISEE's inability to operate same, and the rights set forth herein may be exercised in the sole and absolute discretion of ATFC.
XIII. SOURCES OF PRODUCTS
FRANCHISEE shall purchase and/or lease all products, services, supplies, computer software and hardware, equipment and materials required for the operation of the business from manufacturers, suppliers, or distributors designated by ATFC, or from other suppliers who meet ATFC's specifications and are able to provide products and equipment in accordance with the standards as to quality, appearance and service, and who adequately demonstrate their ability to supply the franchise needs in a timely and reliable manner. Specification of a supplier may be conditioned on requirements relating to, among other things, frequency of delivery, standards of services, including prompt attention to complaints, as well as payments, contributions, or other consideration to ATFC or its affiliates, any advertising fund and/or otherwise, and may be temporary, in each case in ATFC's reasonable discretion. ATFC may, from time-to-time withhold, condition and/or revoke ATFC's approval of particular items or suppliers in its reasonable discretion. ATFC or its affiliates may receive rebates, commissions, promotional allowances and other benefits from suppliers in relation to items purchased by FRANCHISEE and other franchisees. ATFC has the right to condition or revoke Franchisee's right to participate in any supplier programs if FRANCHISEE is in default under this Agreement. Some of the approved suppliers may be affiliated with ATFC.
ATFC may require that samples from other suppliers of any products to be used by FRANCHISEE be delivered to ATFC for testing prior to approval and use. A charge not to exceed the actual cost of the test may be made by ATFC or by an independent testing laboratory designated by ATFC and shall be paid by FRANCHISEE. ATFC shall advise FRANCHISEE within a reasonable period of time of its approval or disapproval of alternate sources of products, services, supplies, suppliers, materials and equipment. The foregoing shall not be construed as an attempt to unreasonably limit the sources from which FRANCHISEE may procure its products, services, supplies and materials. Rather, it is the intention of ATFC that such items conform to ATFC's strict standards and strict specifications as to consistent quality, uniformity and reliability.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees can purchase or lease products, services, supplies, computer software and hardware, equipment, and materials from suppliers not designated by ATFC (All Team Franchising Corporation) if those suppliers meet ATFC's specifications. These specifications relate to quality, appearance, service standards, and the ability to reliably supply the franchise's needs in a timely manner.
ATFC may set conditions for supplier approval, including requirements related to delivery frequency, service standards (such as prompt complaint handling), and payments or contributions to ATFC or its affiliates, including advertising funds. ATFC retains the right to withhold, condition, or revoke approval of specific items or suppliers at its discretion. Furthermore, ATFC or its affiliates may receive benefits like rebates or commissions from suppliers based on franchisee purchases.
All Team may require franchisees to submit samples from alternative suppliers for testing before approval. The franchisee will bear the cost of these tests, which may be conducted by ATFC or an independent testing laboratory. ATFC will then inform the franchisee of its decision regarding the approval of the alternate source. While All Team aims to ensure items meet its standards for quality, uniformity, and reliability, it also states that it will not unreasonably limit the sources from which franchisees can procure their products and services. However, All Team reserves the right to limit the number of approved suppliers for effective supervision.