Who owns National/Regional Accounts developed within the All Team franchise system?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC may develop National/Regional Accounts from time to time and FRANCHISEE may develop accounts that may qualify as a National/Regional Account. National/Regional Accounts obtained by FRANCHISEE for service outside FRANCHISEE's Area must be referred to ATFC and shall be treated as a National/Regional Account; however, ATFC reserves the right to reject any such account in ATFC's sole judgment and discretion. All National/Regional Accounts shall be deemed to be the property of ATFC and FRANCHISEE shall have no claim to same. As such, National/Regional Accounts and related agreements shall be negotiated, managed, and controlled solely by ATFC or its affiliates, even if the National/Regional Account was procured by FRANCHISEE. Any information supplied to ATFC by FRANCHISEE regarding National/Regional Accounts, and supplemental information as may be required by ATFC may be disseminated to all franchisees that may be required to service those accounts. FRANCHISEE agrees that providing account information to other franchisees is in the best interest of the Systems as a whole and for enhancement of opportunities of all within the Systems.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, National/Regional Accounts are deemed the property of All Team Franchise Corporation (ATFC). This means that even if a franchisee procures an account that qualifies as a National/Regional Account, they do not have ownership of it. All Team retains full control over these accounts.
All Team or its affiliates solely negotiate, manage, and control National/Regional Accounts and related agreements. Franchisees are required to refer accounts that may qualify as National/Regional Accounts for service outside their designated area to ATFC. However, All Team reserves the right to reject any such account at its discretion. Franchisees must provide any information regarding National/Regional Accounts to ATFC, which may then be shared with other franchisees who may be required to service those accounts.
This arrangement ensures uniformity and quality of service for National/Regional Accounts across the All Team system. While franchisees may have the opportunity to service these accounts, they must adhere to specific requirements, including maintaining necessary insurance and complying with the terms and conditions set by All Team and the National/Regional Account customer. Failure to comply with these requirements can result in damages, starting at $1,000 for the first violation, increasing to $2,500 for the second, and $5,000 for the third, potentially leading to the franchisee being barred from servicing National/Regional Accounts in the future.