What standards must alternate suppliers meet to be approved for All Team franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ts agents, shall be charged to said account. Nothing contained herein shall be construed to require ATFC to operate the business in the case of FRANCHISEE's inability to operate same, and the rights set forth herein may be exercised in the sole and absolute discretion of ATFC.
XIII. SOURCES OF PRODUCTS
FRANCHISEE shall purchase and/or lease all products, services, supplies, computer software and hardware, equipment and materials required for the operation of the business from manufacturers, suppliers, or distributors designated by ATFC, or from other suppliers who meet ATFC's specifications and are able to provide products and equipment in accordance with the standards as to quality, appearance and service, and who adequately demonstrate their ability to supply the franchise needs in a timely and reliable manner. Specification of a supplier may be conditioned on requirements relating to, among other things, frequency of delivery, standards of services, including prompt attention to complaints, as well as payments, contributions, or other consideration to ATFC or its affiliates, any advertising fund and/or otherwise, and may be temporary, in each case in ATFC's reasonable discretion. ATFC may, from time-to-time withhold, condition and/or revoke ATFC's approval of particular items or suppliers in its reasonable discretion. ATFC or its affiliates may receive rebates, commissions, promotional allowances and other benefits from suppliers in relation to items purchased by FRANCHISEE and other franchisees. ATFC has the right to condition or revoke Franchisee's right to participate in any supplier programs if FRANCHISEE is in default under this Agreement. Some of the approved suppliers may be affiliated with ATFC.
ATFC may require that samples from other suppliers of any products to be used by FRANCHISEE be delivered to ATFC for testing prior to approval and use. A charge not to exceed the actual cost of the test may be made by ATFC or by an independent testing laboratory designated by ATFC and shall be paid by FRANCHISEE. ATFC shall advise FRANCHISEE within a reasonable period of time of its approval or disapproval of alternate sources of products, services, supplies, suppliers, materials and equipment. The foregoing shall not be construed as an attempt to unreasonably limit the sources from which FRANCHISEE may procure its products, services, supplies and materials. Rather, it is the intention of ATFC that such items conform to ATFC's strict standards and strict specifications as to consistent quality, uniformity and reliability.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees must purchase or lease products, services, supplies, computer software and hardware, equipment, and materials from manufacturers, suppliers, or distributors designated by All Team Franchising Corporation (ATFC). However, franchisees can use other suppliers if they meet ATFC's specifications. These alternate suppliers must provide products and equipment that meet All Team's standards for quality, appearance, and service. They also need to demonstrate their ability to supply the franchise's needs in a timely and reliable manner.
All Team may condition the specification of a supplier on requirements relating to frequency of delivery and standards of services, including addressing complaints promptly. These specifications can also include payments, contributions, or other consideration to ATFC or its affiliates, any advertising fund, or other factors, at All Team's discretion. All Team retains the right to withhold, condition, or revoke approval of particular items or suppliers as it sees fit. All Team or its affiliates may receive benefits such as rebates, commissions, and promotional allowances from suppliers based on franchisee purchases. All Team can revoke a franchisee's right to participate in supplier programs if the franchisee is in default under the Franchise Agreement.
To ensure compliance, All Team may require franchisees to submit samples from alternate suppliers for testing before approval and use. The franchisee will bear the cost of this testing, which will not exceed the actual cost incurred by All Team or an independent testing laboratory. All Team will then advise the franchisee of its approval or disapproval within a reasonable timeframe. These measures are in place to ensure that all items used by franchisees conform to All Team's standards for consistent quality, uniformity, and reliability. All Team is not required to approve an excessive number of suppliers for a given item if it would prevent effective supervision of those suppliers.