Does All Team specify the consequences if the franchisee refuses to change the software when required?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE understands that ATFC has the right to change the Software at any time in ATFC's sole discretion.
In such event, FRANCHISEE may be required to change the licensed software FRANCHISEE uses, FRANCHISEE will do so at FRANCHISEE's sole cost and expense and may be required to sign new documentation to license the right to use the new software.
FRANCHISEE and its employees will use the Software for the operation of the Agency in accordance with the terms of this Agreement and the terms, conditions and procedures set forth in the Manual or otherwise disclosed to FRANCHISEE, which may change from time to time.
ATFC may require FRANCHISEE to modify, enhance and/or replace all or any part of the Software at any time and at FRANCHISEE's sole expense.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees may be required to change the licensed software they use, and they will do so at their sole cost and expense. They may also be required to sign new documentation to license the right to use the new software.
All Team may require franchisees to modify, enhance, and/or replace all or any part of the software at any time and at the franchisee's sole expense. Franchisees must also comply with the mandatory requirements in the Confidential Operations Manual, which may be modified from time to time by All Team at its discretion. Franchisees expressly agree to comply with each modification, addition, or deletion of the system or Confidential Operations Manual at their sole cost and expense.
The FDD does not explicitly state the consequences of a franchisee refusing to change the software when required. However, given that compliance with the Operations Manual and required software updates are essential obligations, failure to comply could potentially lead to a breach of the franchise agreement. It is important to note that All Team agrees to impose such requirements and changes in a reasonable, non-discriminatory manner among other franchisees.
Prospective franchisees should seek clarification from All Team regarding the specific consequences of non-compliance with mandatory software changes. Understanding the potential ramifications of not adhering to these requirements is crucial for making an informed investment decision.