Who resolves deadlocks in the All Team National Advisory Council (NAC)?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FC's brand, and publicize ATFC and ATFC franchises, which is consistent with the Section VI.A. These funds will not be used solely for the purpose of advertising for franchisee prospects. ATFC's affiliates shall contribute the same percentage for each Agency that it or its affiliates operate.
The Fund shall be maintained and administered by ATFC as follows: A National Advertising Council ("NAC") shall make strategic planning decisions. ATFC shall retain sole right to make any dayto-day decisions necessary to carry out the strategic planning decisions of the NAC. The NAC shall be comprised of four members made up of franchisees and the Director who will be an employee of ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Director of the National Advertising Council (NAC) is responsible for resolving any deadlocks that may occur within the council. The NAC is responsible for making strategic planning decisions related to the National Advertising Fund, which supports advertising, marketing, and promotional activities for the All Team system.
The NAC consists of four members: three franchisees elected annually by all franchisees in the system and the Director, who is an employee of All Team Franchise Corporation (ATFC). The franchisee members are elected based on the number of votes received, with each agency in full compliance with its Franchise Agreement entitled to one vote. In the event of a tie in the franchisee member election, ATFC will decide the outcome.
The Director's role in resolving deadlocks ensures that the NAC can continue to function effectively and make timely decisions regarding the use of the advertising fund. This structure gives All Team ultimate control over the NAC's decisions, as the Director is an employee of ATFC. While the NAC can develop and approve long-range marketing plans, ATFC retains the sole right to implement these plans and can modify the duties, organization, and membership of the NAC, except for voting eligibility.
For a prospective franchisee, this means that while they have a voice through the elected franchisee members of the NAC, ultimate decision-making power rests with All Team. Franchisees should consider this dynamic when evaluating the level of influence they will have on the brand's marketing and advertising strategies. They should also inquire about the historical frequency of deadlocks and how the Director has resolved them in the past to understand the practical impact of this provision.