What personal property can an All Team franchisee exclude from All Team's right to purchase?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. ATFC's Right to Purchase Personal Property. After the termination or expiration of this Agreement, but not upon an approved Transfer, ATFC shall have the right, but not the obligation, to purchase all of FRANCHISEE's equipment, inventory, supplies and other personal property used in connection with the operation of the business. Notwithstanding the foregoing, FRANCHISEE has the right to keep any and all personal effects and furnishings of sentimental value to FRANCHISEE, which FRANCHISEE elects to exclude. The purchase price shall be at fair market value (less the amount of any liens on the property), which shall be established (if the parties are unable to agree) by the average of two independent appraisals. FRANCHISEE and ATFC shall each select an independent appraiser within thirty (30) days after termination or expiration of this Agreement. If either party fails to select an appraiser within such time period, the appraised value shall be determined by the one appraiser selected. ATFC shall have thirty (30) days after the fair market value is determined as above, to exercise the rights granted hereunder, and shall thereafter have an additional thirty (30) days to pay for the property it desires to purchase.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, All Team has the right to purchase the franchisee's equipment, inventory, supplies, and other personal property used in connection with the business. However, the franchisee has the right to exclude certain personal items from this purchase.
Specifically, an All Team franchisee can keep any and all personal effects and furnishings of sentimental value. The franchisee must elect to exclude these items. This means the franchisee needs to actively identify and claim these items as personal and of sentimental value to prevent All Team from including them in the potential purchase of business-related assets.
The purchase price for the remaining items will be the fair market value, less any liens on the property. If All Team and the franchisee cannot agree on the fair market value, it will be determined by averaging two independent appraisals. Each party selects an appraiser within 30 days of the agreement's termination or expiration. If one party fails to select an appraiser, the value will be determined by the appraiser selected by the other party. All Team then has 30 days to decide whether to exercise its right to purchase the property at the determined fair market value and another 30 days to pay for the property.