What power does an All Team franchisee NOT have regarding ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
nd the cost of the premiums are to be borne by USER. USER shall provide prompt written notice to ATFC at any time that required worker's compensation insurance coverage is not in effect.
- C. Independent Contractor. Nothing in this Processing Agreement shall be construed to constitute either party as the employee, representative or, except to the extent expressly provided herein, the agent of the other, or to constitute ATFC and USER as partners or joint venturers. USER shall not have the power and shall not represent or imply that it has the power, to obligate ATFC for any liabilities or expenses, except as otherwise expressly agreed to in writing by ATFC. Neither USER nor any individual whose compensation for services is paid by USER in any way, directly or indirectly, expressly or by implication, shall be construed to be an employee of ATFC for any purpose, including, without limitation any tax or withholding requirements levied or fixed by any governmental law, rule or regulation is solely responsible for the day-to-day operations of the Business.
- D. Indemnification. Under no circumstances shall ATFC be liable for any act, omission, debt, or other obligation of USER.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee, referred to as "USER" in the agreement, does not have the authority to obligate All Team Franchise Corporation (ATFC) for any liabilities or expenses. This means that franchisees cannot create financial obligations or incur costs on behalf of All Team unless explicitly authorized in writing by ATFC. This protects All Team from unauthorized financial commitments made by its franchisees.
Furthermore, the agreement clarifies that neither the franchisee nor anyone compensated by the franchisee is considered an employee of All Team. This distinction is crucial for tax and legal purposes, ensuring that All Team is not responsible for any tax or withholding requirements related to the franchisee's staff. The franchisee is solely responsible for the day-to-day operations of their business, reinforcing their role as an independent entity.
Additionally, the franchisee cannot assign or transfer the Processing Agreement to another party without prior written consent from All Team. This restriction ensures that All Team maintains control over who is providing the services outlined in the agreement and can assess the suitability of any potential new party. Any transfer of the franchisee's equity is considered an assignment of the Processing Agreement, requiring All Team's consent. This provision is designed to protect All Team's interests and maintain the integrity of its network.