Does All Team grant exclusive territories to franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for National/Regional Accounts described below, we agree that during the term of the Franchise Agreement, so long as you are not in default under the Franchise Agreement, we will not operate or license any other person or entity to operate an Agency located within the Area. We and our affiliates have the absolute right to establish company-owned, affiliate-owned or franchised or licensed outlets or any other operation using the System and Marks at any location outside of the Area. We and our affiliates have the absolute right to establish company-owned, affiliate-owned or franchised or licensed outlets which do not use the System or Marks anywhere we desire, including within the Area. We and our affiliates may also market products, including products with the Marks, through alternative channels of distributions and engage in other business activities at any location without obligation to its franchisees. We are not required to pay you if we or our affiliates exercise any of the rights specified above. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own or from other channels of distribution or competitive brands that we control.
We have not established and do not operate, and have not formulated any plans or policies to establish or operate or to franchise others to operate, any business offering services similar to or competitive with those to be offered for sale by franchisees of your Agency under different trade names or trademarks, or of selling other services or products utilizing the Marks, but we retain the right to do so.
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. The Franchise Agreement grants the right to operate an agency within a designated "Area," typically a Metropolitan Statistical Area (MSA). While All Team agrees not to operate or license another agency within that Area during the term of the agreement, this is subject to certain exceptions.
All Team and its affiliates retain the right to establish company-owned, affiliate-owned, or franchised outlets outside the franchisee's designated Area. They also have the right to establish outlets that do not use the All Team system or marks anywhere, including within the franchisee's Area. Furthermore, All Team and its affiliates can market products, even those with All Team marks, through alternative distribution channels without any obligation to compensate the franchisee. These stipulations mean that franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by All Team, even within their designated Area.
Moreover, All Team retains the right to engage in business within the franchisee's Area for National/Regional Accounts, which are accounts with multiple locations covered by a service agreement not confined to a single franchisee's area. While franchisees may have the opportunity to service locations of these accounts within their Area, All Team ultimately controls these accounts. The FDD also states that if All Team or its affiliates are acquired by another company involved in the temporary service or permanent placement business, the acquiring entity can continue operating existing offices within the franchisee's Area under any trade name, which could further impact the competitive landscape.
In summary, while franchisees are granted an Area, the agreement contains numerous exceptions that allow All Team to operate or license others to operate similar businesses within or near the franchisee's territory. This lack of exclusivity is a significant factor for prospective franchisees to consider, as it introduces the potential for direct competition from the franchisor and other franchisees.