Does All Team have the right to operate an acquired business under the All Team Marks?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary in this Agreement, if ATFC or any of its affiliates acquires from or is acquired by an unrelated third party, through purchase of assets or stock, including the acquisition of a majority voting interest, or through a merger, consolidation or any other form of business combination, which is engaged in the temporary service business or permanent placement business with an owned or franchised office in the Area, ATFC, or its affiliates and the surviving entity in a merger, consolidation or other form of business combination, as the case may be, will have the right to continue the operation of such office in the Area as a company owned or franchised office under the trade name utilized by the acquired or acquiring business for such office before the acquisition, or under the Marks.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team or its affiliates retain specific rights regarding business acquisitions and the use of their marks. If All Team or its affiliates acquire a temporary service or permanent placement business, through purchase or merger, that has an office within a franchisee's area, All Team has the right to continue operating that office.
Specifically, All Team can operate the acquired office as either a company-owned or franchised office. This operation can occur under the trade name the acquired business used before the acquisition, or alternatively, under the All Team Marks. This clause applies regardless of any contradictory information within the franchise agreement.
This provision is important for prospective franchisees as it clarifies All Team's rights in the event of an acquisition. It means that even if a franchisee has an exclusive territory, All Team could potentially operate a competing business within that territory if that business was acquired by All Team. The acquired business can operate under its original name or under the All Team Marks. Franchisees should consider this possibility and its potential impact on their business when evaluating the All Team franchise opportunity.