factual

What section of the All Team franchise agreement discusses the transferability of interest in the franchise?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

XVI. TRANSFERABILITY OF INTEREST

  • A.

By ATFC.

ATFC is free to assign all of its rights and obligations under this Agreement, and upon such assignment ATFC shall be relieved of all liability under this Agreement, and all rights and obligations shall accrue to the successor or assignee.

  • B.

By FRANCHISEE.

ATFC has the right to reasonably disapprove any person or entity that would have actual, legal or effective control over the Agency and shall have the right to approve any Transfer.

Consent to a Transfer shall not be deemed a waiver of ATFC's right to consent to any subsequent Transfers.

Source: Item 22 — CONTRACTS (FDD pages 33–34)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, Section XVI of the franchise agreement outlines the transferability of interest. This section details the conditions under which both All Team and the franchisee can transfer their respective interests in the agreement.

Specifically, Section XVI.A states that All Team is permitted to assign its rights and obligations under the agreement, which would relieve All Team of any further liability. Section XVI.B addresses the franchisee's ability to transfer their interest, noting that All Team has the right to reasonably disapprove of any person or entity gaining control over the agency and must approve any transfer.

This section emphasizes that All Team's consent to a transfer does not waive its right to consent to any subsequent transfers, ensuring that each potential change in ownership is subject to their approval. This provision is typical in franchise agreements, as franchisors want to maintain control over who operates their branded locations to protect brand standards and reputation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.