Does All Team specify that the initial franchise fee will be used for general operating funds?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added to the end of Item 5:
The initial franchise fee constitutes part of our general operating funds and will be used as such in our discretion.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
Yes, according to All Team's 2025 Franchise Disclosure Document, the initial franchise fee constitutes part of their general operating funds. This means that the $42,500 franchise fee (or $37,500 for existing franchisees purchasing an additional franchise) that All Team collects from new franchisees is used at their discretion to cover the company's operational expenses.
This is a fairly standard practice in franchising, as the initial franchise fee is often used to cover the franchisor's costs of recruiting and training new franchisees, as well as providing initial support and resources. The FDD clarifies that these funds are not specifically earmarked for any particular purpose, giving All Team flexibility in how they are used.
Prospective franchisees should understand that the initial franchise fee is non-refundable once paid (unless All Team does not accept the agreement within 30 days). Therefore, it is important to carefully consider the investment and conduct thorough due diligence before signing the franchise agreement and paying the fee.