What happens to the rights and obligations of the All Team Franchise Agreement upon assignment by ATFC?

According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) has the right to assign its rights and obligations under the Franchise Agreement. Upon such an assignment, ATFC is relieved of all liability under the agreement, and all rights and obligations then transfer to the successor or assignee. This means that a new entity could step in as the franchisor, assuming all responsibilities and benefits outlined in the original agreement.

For a prospective All Team franchisee, this clause signifies that the relationship with ATFC could change. While the core terms of the franchise agreement should remain intact, the entity responsible for upholding those terms could be different. It's important to recognize that the new franchisor may have different management styles, resources, or strategic priorities, which could impact the franchisee's experience.

This transferability clause is fairly standard in franchising. It allows the franchisor to sell the entire franchise system or merge with another company. However, franchisees should carefully consider the implications of dealing with a potentially unknown entity in the future and how that might affect their business. Franchisees should seek clarification from All Team regarding the typical reasons for assignment and the criteria used to select a successor.