What is the scope of the Processing Agreement being personal to an All Team USER?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Processing Agreement is personal to USER and shall not be assignable or transferable by USER, in whole or in part, either voluntarily or by operation of law, except with the prior written consent of ATFC, which consent shall not unreasonably be withheld.
For all purposes of this Processing Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Processing Agreement requiring such consent.
Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement between All Team Franchise Corporation (ATFC) and the USER (franchisee) is personal to the USER. This means the USER cannot assign or transfer the Processing Agreement to another party without prior written consent from ATFC. ATFC's consent cannot be unreasonably withheld.
Specifically, the transfer of the majority of the USER's equity to individuals other than the current owners, or the transfer of a substantial portion of the business in one or more transactions, is considered an assignment of the Processing Agreement. This requires ATFC's consent. This provision ensures that the franchisor maintains control over who is providing the services and using their systems.
Furthermore, any assignment of the Processing Agreement by the USER must occur in conjunction with a corresponding assignment under the Franchise Agreement. This implies that if a franchisee sells their All Team franchise, the Processing Agreement can only be transferred to the new franchisee if All Team approves the franchise transfer. This protects All Team's interests by ensuring that the party utilizing their processing services is also an approved franchisee.