How does All Team intend to use the initial franchise fee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee constitutes part of our general operating funds and will be used as such in our discretion.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the initial franchise fee constitutes part of their general operating funds and will be used as such at their discretion. This means that the $42,500 franchise fee (or $37,500 for existing franchisees purchasing an additional franchise) that franchisees pay to All Team upon execution of the Franchise Agreement goes into the company's general funds.
For a prospective franchisee, this indicates that the franchise fee is not earmarked for any specific purpose like training or site selection. Instead, All Team has broad discretion in how they allocate these funds within their business operations. This is a fairly standard practice in franchising, as the initial fee contributes to the franchisor's overall revenue and supports various aspects of the franchise system.
It is important for potential franchisees to understand that the fee is non-refundable once All Team accepts the agreement, so franchisees should conduct thorough due diligence before signing. While the FDD specifies that the franchise fee is used for general operating funds, a prospective franchisee may want to inquire with All Team about how these funds are typically allocated to better understand how the initial fee contributes to the support and development of the franchise system.