What is the geographic scope of the non-compete restriction for an All Team franchisee after termination?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Non-Competition After Termination. For two (2) years after the termination, expiration or Transfer of this Agreement for any reason, unless FRANCHISEE has the prior written consent of ATFC:
FRANCHISEE will not directly or indirectly, through itself or through corporations, partnerships, trusts, associations, joint ventures, limited liability companies, or other entities or otherwise, perform any services for, engage in or acquire, be an employee of, have any financial interest in, loan money to, lease property to, or have any interest based on profits or revenues of any Similar Business. The geographical scope of this restriction shall cover the Area of the Agency and the area of any other ATFC agency, whether such agency is operated by ATFC, an affiliate of ATFC, a licensee of ATFC, or a franchisee of ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the geographic scope of the non-compete restriction after termination extends to the area of the franchisee's agency and the area of any other All Team agency. This includes agencies operated by All Team itself, its affiliates, its licensees, or its other franchisees.
This means that for two years after leaving the All Team system, a former franchisee cannot engage in a similar business within their original territory or within the territory of any other All Team outlet. This restriction is in place regardless of the reason for termination, expiration, or transfer of the franchise agreement, unless the franchisee obtains prior written consent from All Team Franchise Corporation (ATFC).
For a prospective franchisee, this non-compete clause is a significant consideration. It limits their ability to operate a similar business in a potentially wide geographic area after their franchise agreement ends. It is important to fully understand the territories of existing All Team agencies to assess the potential impact of this restriction. The franchisee should also consider negotiating the scope of this restriction before signing the franchise agreement.