Does the All Team Processing Agreement specify any requirements for the All Team USER's successors and assigns?
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.
This Processing Agreement is fully assignable by ATFC.
- F. Successors and Assigns. This Processing Agreement shall be binding upon and shall inure to the benefit of ATFC and USER, and their permitted successors and assigns.
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 conditions regarding successors and assigns. The agreement is binding upon All Team and the USER, as well as their permitted successors and assigns. However, the Processing Agreement is personal to the USER and cannot be assigned or transferred, either voluntarily or by law, without All Team's prior written consent, which will not be unreasonably withheld.
The transfer of the majority of the USER's equity to new owners or the transfer of a substantial portion of the business is considered an assignment of the Processing Agreement, requiring All Team's consent. Any assignment of the Processing Agreement by the USER must occur in conjunction with a corresponding assignment of the Franchise Agreement.
These provisions ensure that All Team maintains control over who operates under its brand and with its systems. A prospective franchisee should understand that they cannot simply sell or transfer the business without All Team's approval and that any transfer must also include the franchise rights.