Can All Team require an All Team franchisee to deliver samples from alternate suppliers for testing?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC may require that samples from other suppliers of any products to be used by FRANCHISEE be delivered to ATFC for testing prior to approval and use. A charge not to exceed the actual cost of the test may be made by ATFC or by an independent testing laboratory designated by ATFC and shall be paid by FRANCHISEE. ATFC shall advise FRANCHISEE within a reasonable period of time of its approval or disapproval of alternate sources of products, services, supplies, suppliers, materials and equipment. The foregoing shall not be construed as an attempt to unreasonably limit the sources from which FRANCHISEE may procure its products, services, supplies and materials. Rather, it is the intention of ATFC that such items conform to ATFC's strict standards and strict specifications as to consistent quality, uniformity and reliability. Further, ATFC shall not be required to approve an inordinate number of suppliers of a given item which in the reasonable judgment of ATFC would prevent effective supervision of suppliers by ATFC.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team may require franchisees to submit samples from alternative suppliers for testing before approval and use. This allows All Team to maintain quality control and ensure that all products used within the franchise meet their standards.
The cost of testing these samples, which cannot exceed the actual cost of the test, is to be borne by the franchisee. The testing may be conducted either by All Team itself or by an independent testing laboratory designated by All Team.
All Team is obligated to inform the franchisee within a reasonable timeframe whether the proposed alternate sources of products, services, supplies, materials, and equipment are approved or disapproved. While All Team aims to ensure items meet their standards for quality, uniformity, and reliability, they also state that they will not unreasonably limit the sources from which a franchisee can procure these items. All Team also retains the right to limit the number of approved suppliers to effectively supervise them.