What happens if an All Team franchisee does not execute the required general release during a transfer?

According to All Team's 2025 Franchise Disclosure Document, a franchisee must execute a general release as part of the transfer process. Specifically, the franchisee, including all officers, directors, and shareholders, along with any guarantors, must provide a general release, in a form approved by All Team Franchise Corporation (ATFC), that waives any claims against ATFC, its affiliates, and their respective officers, directors, employees, and agents, to the extent permitted by law. This release is a prerequisite for ATFC's approval of the transfer.

If the All Team franchisee fails to execute this general release, ATFC will not approve the sale, transfer, or change in ownership. The FDD states that ATFC will approve a sale, Transfer or change in ownership only if the FRANCHISEE, including all officers, directors and shareholders (as well as all guarantors under this Agreement) must execute a general release, in the form which ATFC approve. This condition is listed alongside other requirements such as governmental compliance, prior compliance with the franchise agreement, satisfaction of financial obligations, and the transferee meeting the standards for new franchisees.

In practical terms, this means that a franchisee who refuses to sign the general release will be unable to sell or transfer their All Team franchise. This requirement protects All Team from potential future claims by the outgoing franchisee related to the franchise agreement or the franchisor-franchisee relationship. Prospective franchisees should understand that this release is a standard part of the transfer process and should be prepared to comply with this requirement if they plan to sell their franchise in the future.