Is All Team permitted to negotiate the terms covered in the Franchise Disclosure Document with a prospective franchisee in New York?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT E OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW, BUREAU OF INVESTOR PROTECTION AND SECURITIES, 120 BROADWAY, 23RD FLOOR, NEW YORK, NEW YORK 10271. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team may negotiate terms with a prospective franchisee regarding items covered in the FDD. However, All Team is not allowed to use this negotiation process to convince a prospective franchisee to accept terms that are less favorable than those already outlined in the Franchise Disclosure Document.
This means that while there is room for discussion and potential adjustments to the franchise agreement, All Team must ensure that any negotiated terms are fair and equitable for the franchisee. This protects the prospective franchisee from being pressured into accepting unfavorable conditions during the negotiation process.
For a prospective All Team franchisee in New York, this is an important safeguard. It allows them to engage in discussions with All Team about the franchise terms while ensuring that their rights and interests are protected. If a prospective franchisee feels that All Team is pushing for less favorable terms, they should seek legal counsel and contact the Federal Trade Commission and the New York State Department of Law.