Does this section of the All Team FDD obligate ATFC to extend credit to the franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
Neither ATFC nor any of its affiliates are required to accept payments after same are due or extend credit or otherwise finance FRANCHISEE's operation of the franchise.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, ATFC is not obligated to extend credit to franchisees. Item 22 of the FDD clarifies the contractual obligations of both the franchisor and franchisee.
Specifically, the document states that neither All Team nor its affiliates are required to accept payments after they are due or to extend credit to finance the franchisee's operation. This means a prospective All Team franchisee cannot rely on receiving financial assistance or leniency in payment schedules from All Team.
This disclaimer protects All Team from being obligated to provide financial support to franchisees, and it is a fairly standard clause in franchise agreements. A prospective franchisee should ensure they have sufficient capital and financing options independent of All Team to cover their business operations.