What is the standard for ATFC's consent to an All Team USER's assignment of the Processing Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Processing Agreement is personal to USER and shall not be assignable or transferable by USER, in whole or in part, either voluntarily or by operation of law, except with the prior written consent of ATFC, which consent shall not unreasonably be withheld.
For all purposes of this Processing Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Processing Agreement requiring such consent.
Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement is personal to the USER (franchisee) and cannot be assigned or transferred, either voluntarily or by law, without All Team's prior written consent. However, All Team agrees that its consent will not be unreasonably withheld.
Furthermore, the transfer of the majority of the USER's equity to new owners, or the transfer of a substantial portion of the business in one or more transactions, is considered an assignment of the Processing Agreement. This means that All Team's consent is required even if the ownership of the franchise changes hands.
Finally, any assignment of the Processing Agreement must occur in conjunction with a corresponding assignment of the Franchise Agreement. This implies that the approval of a transfer of the franchise itself is interconnected with the approval of the Processing Agreement transfer.