Is the All Team Processing Agreement assignable or transferable by the USER?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Processing Agreement is personal to USER and shall not be assignable or transferable by 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.
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 personal to the USER (franchisee) and is generally not assignable or transferable. The agreement cannot be assigned or transferred, in whole or in part, either voluntarily or by operation of law, unless All Team provides prior written consent. All Team's consent will not be unreasonably withheld.
Furthermore, the transfer of the majority of the equity of the USER to individuals other than the current owners, or the transfer of a substantial portion of the business in one or more transactions, is considered an assignment of the Processing Agreement. This type of transfer also requires All Team's consent.
Any permitted assignment of the Processing Agreement must occur in conjunction with a corresponding assignment under the Franchise Agreement. This means that if a franchisee sells their All Team franchise, the rights and obligations under the Processing Agreement can only be transferred to the new franchisee if the Franchise Agreement is also properly assigned.