Does All Team reserve rights not specifically granted to the franchisee in the franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Rights Reserved. ATFC reserves all rights not specifically granted to FRANCHISEE pursuant to this Agreement, all without compensation to FRANCHISEE, including the following: ATFC and its affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses outside the Area using the Systems and Marks, or using other systems and marks. ATFC agrees that as long as FRANCHISEE complies with the terms of this Agreement, ATFC will not itself, or through affiliates, operate, franchise or license to a third party the right to operate an ATFC agency in the Area. Notwithstanding the foregoing, ATFC, its affiliates and other franchisees and licensees are permitted to (1) operate or license others to operate businesses similar to or the same as the Agency under different Marks anywhere, including within Area; (2) operate or license others to operate businesses that are different than the business operated by the Agency under the Marks or other marks, including within the Area (3) service National/Regional Accounts pursuant to Section II.C., below; and (4) market products, including products with the Marks, through alternative channels of distributions and engage in other business activities at any location without obligation to its franchisees. Neither ATFC nor its affiliates are required to pay FRANCHISEE if ATFC or its affiliates exercise any of the rights specified above within the Area.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) retains all rights not explicitly granted to the franchisee. This means that while franchisees are given specific rights to operate their All Team agency, All Team maintains control over aspects of the business not directly addressed in the franchise agreement. This reservation of rights allows All Team to pursue other business opportunities and strategies without necessarily compensating the franchisee.
Specifically, All Team reserves the right to operate, franchise, or license businesses outside the franchisee's designated area using the All Team system and marks, or even other systems and marks. While All Team agrees not to operate or franchise another All Team agency within the franchisee's area as long as the franchisee complies with the agreement, there are exceptions. All Team, its affiliates, and other franchisees and licensees can operate similar businesses under different marks anywhere, including within the franchisee's area. They can also operate different businesses under the All Team marks or other marks within the area, service national/regional accounts, and market products through alternative channels without any obligation to compensate the franchisee.
This broad reservation of rights has several implications for prospective All Team franchisees. It means that All Team can engage in activities that might compete with or otherwise affect the franchisee's business, as long as those activities fall outside the specific rights granted in the franchise agreement. Franchisees should be aware that All Team's future business decisions could impact their operations, and they will not necessarily be entitled to compensation for any such impact. It is important for potential franchisees to carefully consider these reserved rights and how they might affect their investment and business prospects.