Can All Team reject a National/Regional Account obtained by an All Team franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
C. "National/Regional" Accounts. ATFC may develop National/Regional Accounts from time to time and FRANCHISEE may develop accounts that may qualify as a National/Regional Account. National/Regional Accounts obtained by FRANCHISEE for service outside FRANCHISEE's Area must be referred to ATFC and shall be treated as a National/Regional Account; however, ATFC reserves the right to reject any such account in ATFC's sole judgment and discretion. All National/Regional Accounts shall be deemed to be the property of ATFC and FRANCHISEE shall have no claim to same. As such, National/Regional Accounts and related agreements shall be negotiated, managed, and controlled solely by ATFC or its affiliates, even if the National/Regional Account was procured by FRANCHISEE. Any information supplied to ATFC by FRANCHISEE regarding National/Regional Accounts, and supplemental information as may be required by ATFC may be disseminated to all franchisees that may be required to service those accounts. FRANCHISEE agrees that providing account information to other franchisees is in the best interest of the Systems as a whole and for enhancement of opportunities of all within the Systems.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team has the right to reject a National/Regional Account that a franchisee obtains for service outside of the franchisee's designated area. While franchisees can develop accounts that may qualify as National/Regional Accounts, those accounts for service outside the franchisee's area must be referred to All Team. All Team reserves the right to reject these accounts at its sole discretion.
National/Regional Accounts are deemed the property of All Team, meaning the franchisor manages the agreements, even if the franchisee initially procured the account. Franchisees must refer these accounts to All Team, and All Team has the authority to decide whether to accept them. This system ensures that National/Regional Accounts are managed consistently across the All Team system.
This policy has significant implications for franchisees. While franchisees can seek out National/Regional Accounts, they do not have the right to service them independently if the service area is outside their territory. All Team retains control over these accounts, which could limit a franchisee's potential revenue and growth. Franchisees are expected to provide information about these accounts to All Team, which may then disseminate this information to other franchisees to service the accounts. This arrangement is designed to benefit the All Team system as a whole, but it also means that a franchisee might not directly benefit from the accounts they initially developed.