What is All Team's obligation regarding advising a franchisee about the approval or disapproval of alternate sources of products?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC may require that samples from other suppliers of any products to be used by FRANCHISEE be delivered to ATFC for testing prior to approval and use. A charge not to exceed the actual cost of the test may be made by ATFC or by an independent testing laboratory designated by ATFC and shall be paid by FRANCHISEE. ATFC shall advise FRANCHISEE within a reasonable period of time of its approval or disapproval of alternate sources of products, services, supplies, suppliers, materials and equipment. The foregoing shall not be construed as an attempt to unreasonably limit the sources from which FRANCHISEE may procure its products, services, supplies and materials. Rather, it is the intention of ATFC that such items conform to ATFC's strict standards and strict specifications as to consistent quality, uniformity and reliability. Further, ATFC shall not be required to approve an inordinate number of suppliers of a given item which in the reasonable judgment of ATFC would prevent effective supervision of suppliers by ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee proposes an alternate supplier for products, services, supplies, materials, or equipment, All Team is obligated to advise the franchisee of its approval or disapproval within a reasonable time frame.
All Team may require franchisees to submit samples from alternative suppliers for testing before approval. The franchisee is responsible for covering the costs of these tests, whether conducted by All Team or an independent testing laboratory designated by All Team.
However, All Team maintains strict standards for quality, uniformity, and reliability, and the approval of alternate suppliers is subject to these standards. All Team is not required to approve an excessive number of suppliers for a single item if it believes that doing so would hinder its ability to effectively supervise those suppliers.