What happens to the franchisee's obligations regarding non-competition after the All Team franchise agreement terminates?
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.
FRANCHISEE will not, directly or indirectly, on its own behalf or on the behalf of others, solicit or service for, or divert or appropriate to any Similar Business, or attempt to solicit, divert or appropriate to or from any Similar Business, any person or entity which is or was at any time during the preceding two (2) year period a customer of FRANCHISEE, ATFC or any affiliate or licensee or franchisee of ATFC.
FRANCHISEE will not, either directly or indirectly, on its own behalf or on the behalf of others, solicit, divert or hire away, or attempt to solicit, divert or hire away, to any Similar Business any person employed by ATFC or its affiliates or licensees, nor will FRANCHISEE solicit, divert or hire away or attempt to solicit, divert or hire away to the Agency or any Similar Business any such employee of any licensee or franchisee of ATFC without the prior written consent of such licensee or 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, franchisees are subject to certain non-competition obligations for two years after the termination, expiration, or transfer of the Franchise Agreement. Unless All Team provides prior written consent, the franchisee cannot directly or indirectly engage in any Similar Business. This includes performing services for, being employed by, having a financial interest in, loaning money to, or leasing property to any business similar to All Team.
The geographical scope of this restriction includes the area of the franchisee's agency and the area of any other All Team agency, regardless of whether it's operated by All Team, an affiliate, a licensee, or another franchisee. Furthermore, the franchisee is prohibited from soliciting or servicing customers of All Team, its affiliates, licensees, or franchisees, or attempting to divert or appropriate those customers to any Similar Business. This restriction applies to any person or entity that was a customer within the two years preceding the termination.
Additionally, the franchisee is barred from soliciting, diverting, or hiring away any person employed by All Team, its affiliates, or licensees to any Similar Business. The franchisee also cannot solicit, divert, or hire away any employee of a licensee or franchisee of All Team to the Agency or any Similar Business without the prior written consent of that specific licensee or franchisee. These post-termination restrictions are designed to protect All Team's business interests and customer relationships.