May All Team negotiate purchase arrangements with suppliers (including price terms) for the benefit of the franchise system?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to negotiate with various vendors for quantity discount contracts which may include rebates under these contracts, but have not done so at this time. You may or may not find the contracts to your advantage and may elect to participate or not to participate in them. We have the right to affiliate ourselves with suppliers, and/or receive revenues from purchases made by franchisees, however during fiscal year 2024, we did not receive any rebates or other consideration based on our franchisees purchases. There are currently no purchasing or distribution cooperatives. We may negotiate purchase arrangements with suppliers (including price terms) for the benefit of the franchise system. We do not provide material benefits to you (for example, renewal or granting additional franchises) based on your purchase of particular products or services or use of particular suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team reserves the right to negotiate purchase arrangements with suppliers, including price terms, for the benefit of the franchise system. However, franchisees may or may not find these contracts advantageous and can choose whether or not to participate in them.
This indicates that All Team may leverage its collective buying power to secure better deals from suppliers, potentially lowering costs for franchisees. However, participation in these negotiated contracts is not mandatory, allowing franchisees to source products and services independently if they find better deals elsewhere.
While All Team can negotiate these arrangements, the FDD does not specify how these potential benefits are distributed or guaranteed to franchisees. A prospective franchisee should inquire about the specifics of these negotiated arrangements, including which products or services are covered, the typical savings achieved, and the criteria for selecting participating suppliers.