Does the Guaranty and Assumption of Obligations in the All Team Franchise Agreement extend to provisions relating to the Marks and Transfers?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE IS NOT A FRANCHISEE OF ATFC AND MAY NOT RELY UPON BECOMING A FRANCHISEE OF ATFC.**
IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth below their names.
ALL TEAM FRANCHISE CORPORATION Brian Hindman, Chief Executive Officer , Address of FRANCHISEE:# GUARANTY AND ASSUMPTION OF OBLIGATIONS
In consideration of, and as an inducement to, the execution of the above Franchise Agreement (the "Agreement"), by ALL TEAM FRANCHISE CORPORATION ("ATFC") in favor of _______________________ ("FRANCHISEE"), each of the undersigned ("GUARANTORS") hereby personally and unconditionally guarantees to ATFC, its Affiliates (as hereinafter defined), and their successors and assigns for the term of the Agreement and thereafter as provided in the Agreement, that FRANCHISEE shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and agrees to be personally bound by, and personally liable for the breach of each and every provision in the Agreement, including but not limited to, the restrictive covenants and nondisclosure provisions contained in the Agreement, as well as the provisions in the Agreement relating to the Marks and Transfers to the same extent as and for the same period of time as FRANCHISEE is
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations does extend to provisions relating to the Marks and Transfers. Specifically, the guarantor agrees to be personally bound by and liable for any breach of the franchise agreement, which includes provisions related to the Marks and Transfers. This obligation remains in effect for the same duration that the franchisee is required to comply with these provisions, and it survives any termination or expiration of the franchise agreement.
This means that if a franchisee violates any terms related to All Team's trademarks, service marks, trade dress, trade names, or copyrights (referred to as the "Marks"), the guarantor is personally responsible for the breach. Similarly, if the franchisee violates any terms related to transferring the franchise, the guarantor is also liable. This personal guarantee provides All Team with an additional layer of security, ensuring that the franchisee adheres to all aspects of the franchise agreement, including those pertaining to the brand's intellectual property and the proper procedures for transferring ownership.
For a prospective All Team franchisee, this implies that anyone signing a Guaranty and Assumption of Obligations must fully understand the implications of the franchise agreement, especially concerning the Marks and Transfers. The guarantor's personal assets are at risk if the franchisee fails to comply with these provisions. Therefore, it is crucial to carefully review the franchise agreement and seek legal counsel to fully grasp the extent of the obligations and potential liabilities associated with the guaranty.