Is the All Team Processing Agreement assignable by ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
n consent of ATFC, which consent shall not unreasonably be withheld. For all purposes of this Processing Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Processing Agreement requiring such consent. Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement is fully assignable by ATFC (All Team Franchise Corporation, Inc.). This means that All Team, as the franchisor, has the right to transfer its rights and obligations under the Processing Agreement to another party without needing the franchisee's consent.
However, the Processing Agreement is personal to the USER (franchisee) and is not assignable or transferable by the USER, in whole or in part, either voluntarily or by operation of law, except with the prior written consent of ATFC, which consent shall not unreasonably be withheld. Furthermore, any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement.
This condition protects All Team by ensuring they can transfer their processing responsibilities if needed, while also restricting franchisees from assigning the agreement without approval. The requirement for alignment with the Franchise Agreement ensures that the processing services remain tied to the franchise operation itself. This is a fairly standard clause in franchise agreements, allowing the franchisor flexibility while maintaining control over who provides key services to the franchisees.