Does Section XI.B of the All Team Franchise Agreement affect the franchisee's obligations regarding competing businesses?

According to All Team's 2025 Franchise Disclosure Document, Section XI of the Franchise Agreement addresses non-competition both during and after the term of the agreement. Specifically, Section XI.B outlines the restrictions placed on the franchisee after the termination, expiration, or transfer of the agreement. This section states that for two years following the end of the franchise agreement, the franchisee is restricted from engaging in any similar or competing business without prior written consent from All Team.

This post-termination non-compete clause prevents a former All Team franchisee from leveraging the knowledge, know-how, and expertise gained during their time as a franchisee to directly compete with All Team. The restriction applies regardless of the reason for termination, expiration, or transfer of the agreement. The definition of a "Similar Business" includes providing temporary and permanent staffing in areas such as healthcare and environmental, hospitality and food service, management recruiting, labor and light industrial, and administrative and clerical.

All Team includes a clause stating that they intend to restrict franchisee activities only to the extent necessary to protect their legitimate business interests. The agreement also states that if a court finds any of the restrictions too broad, it is authorized to modify or limit the restriction to permit its enforcement. All Team also has the right to reduce the scope of any covenant contained in Section XI with written notice to the franchisee. This indicates an intention to maintain reasonable and enforceable non-compete provisions.