What standards must a transferee meet to be approved for an All Team franchise transfer?

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• B. By FRANCHISEE. ATFC has the right to reasonably disapprove any person or entity that would have actual, legal or effective control over the Agency and shall have the right to approve any Transfer. Consent to a Transfer shall not be deemed a waiver of ATFC's right to consent to any subsequent Transfers. ATFC will approve a sale, Transfer or change in ownership under the following conditions:
• 1. Governmental Compliance. The Transfer is conducted in compliance with applicable laws and regulations and the transferee has all permits and licenses necessary to operate the Agency;
• 1. Prior Compliance. The FRANCHISEE has performed its obligations and duties under this Agreement and FRANCHISEE is not in default under this Agreement, or any other agreement with ATFC;
• 1. Payments. The transferee has satisfied all of its obligations to ATFC, ATFC's affiliates and suppliers under this Agreement and all other agreements it has with ATFC;
• 1. Release. The FRANCHISEE, including all officers, directors and shareholders (as well as all guarantors under this Agreement) must execute a general release, in the form which ATFC approve, of any and all claims against ATFC, ATFC's affiliates, and their respective officers, directors employees and agents, to the extent permitted by law;
• 1. Requirements of Transferee. The transferee meets the established standards for new franchisees, is of good moral character, has a good credit rating, sufficient financial resources to operate the business and competent qualifications. The transferee must execute a new Franchise Agreement which may contain different terms and conditions than this Agreement and a Guaranty and Assumption of Obligations;
• 1. Transfer Fee. The transferee pays a transfer fee of 50% of the then current Franchise Fee in lieu of the Franchise Fee;
• 1. Assumption of Liabilities. The transferee agrees to assume all liabilities and obligations from the prior operation of the Agency, including the lease and complies with other reasonable requirements ATFC may impose;
• 1. Completion of Training. The transferee and/or transferee's management team, including a designated manager, successfully complete the initial training program;
• 1. Update and Remodel Agency. The transferee updates and remodels the Agency to comply with the then current standards;
• 1. Continuing Liability. If ATFC approves an assignment, ATFC shall have the discretion to require FRANCHISEE and the guarantors to remain liable for the full and faithful performance of the obligations of the assignee; and
• 1. Economically Reasonable Terms.

Source: Item 22 — CONTRACTS (FDD pages 33–34)