Does the All Team Processing Agreement specify any requirements for the form of the assignment agreement?
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 outlines specific requirements related to assignment. The agreement is personal to the franchisee (USER) and is not assignable or transferable, either voluntarily or by law, without All Team's prior written consent, which will not be unreasonably withheld.
For a transfer of equity or a substantial portion of the business, it will be considered an assignment requiring consent. Furthermore, any assignment of the Processing Agreement must occur in conjunction with a corresponding assignment under the Franchise Agreement.
This means a prospective All Team franchisee needs to understand that they cannot transfer the Processing Agreement independently. Any transfer of ownership or a significant part of the business requires All Team's approval and must align with the transfer of the franchise itself. This ensures All Team maintains control over who is providing the processing services and that the new entity also complies with the franchise terms.