What laws and regulations must the transfer of an All Team franchise comply with?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
or effective control over the Agency and shall have the right to approve any Transfer. Consent to a Transfer shall not be deemed a waiver of ATFC's right to consent to any subsequent Transfers. ATFC will approve a sale, Transfer or change in ownership under the following conditions:
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- Governmental Compliance. The Transfer is conducted in compliance with applicable laws and regulations and the transferee has all permits and licenses necessary to operate the Agency;
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- Prior Compliance. The FRANCHISEE has performed its obligations and duties under this Agreement and FRANCHISEE is not in default under this Agreement, or any other agreement with ATFC;
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- Payments. The transferee has satisfied all of its obligations to ATFC, ATFC's affiliates and suppliers under this Agreement and all other agreements it has with ATFC;
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- Release. 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, of any and all claims against ATFC, ATFC's affiliates, and their respective officers, directors employees and agents, to the extent permitted by law;
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- Requirements of Transferee.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 All Team Franchise Disclosure Document, a transfer of ownership must comply with all applicable laws and regulations. Specifically, the transferee must possess all necessary permits and licenses required to operate the All Team agency. This ensures that the new owner is legally authorized to run the business according to local, state, and federal guidelines.
In addition to legal compliance, All Team requires that the franchisee is up to date on their obligations and duties under the franchise agreement. The franchisee must not be in default under the agreement or any other agreements with All Team. The transferee must also satisfy all outstanding financial obligations to All Team, its affiliates, and suppliers. This condition ensures that the franchise is in good standing before it changes hands.
Furthermore, the transfer process involves several other conditions, including the transferee meeting All Team's standards for new franchisees, completing the initial training program, and updating the agency to current standards. These requirements ensure that the new franchisee is well-prepared and capable of maintaining the quality and consistency of the All Team brand. The transfer is also contingent on the payment of a transfer fee, which is 50% of the then-current franchise fee.