Does the All Team franchisor have any restrictions on assigning the Processing Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
n consent of ATFC, which consent shall not unreasonably be withheld. For all purposes of this Processing Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Processing Agreement requiring such consent. Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement. This Processing Agreement is fully assignable by ATFC.
- F. Successors and Assigns. This Processing Agreement shall be binding upon and shall inure to the benefit of ATFC and USER, and their permitted successors and assigns.
- G.
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, All Team Franchise Corporation (ATFC) has the right to assign the Processing Agreement. The document states that the Processing Agreement is fully assignable by ATFC. This means All Team can transfer its rights and obligations under the Processing Agreement to another party without needing the franchisee's consent.
However, the franchisee's ability to assign the Processing Agreement is restricted. The FDD states that the Processing Agreement is personal to the user (the franchisee) and is not assignable or transferable by the franchisee, either voluntarily or by operation of law, without the prior written consent of ATFC. This consent will not be unreasonably withheld. Furthermore, the transfer of the majority of the equity of the franchisee to persons other than the present owners, or of any substantial portion of the business in one or more transactions, is deemed an assignment of the Processing Agreement requiring such consent.
Additionally, any assignment of the Processing Agreement by either party must be in conjunction with a corresponding assignment under the Franchise Agreement. This implies that the Processing Agreement cannot be assigned independently of the Franchise Agreement, ensuring that both agreements remain aligned in terms of ownership and obligations. This dual requirement protects the integrity of the overall franchising relationship and ensures that any changes in the franchise ownership also reflect changes in the processing agreement.