What standards must the transferee meet to be considered for a new All Team franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
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- 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;
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- Transfer Fee. The transferee pays a transfer fee of 50% of the then current Franchise Fee in lieu of the Franchise Fee;
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- Assumption of Liabilities.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a transferee must meet several standards to be approved as a new franchisee. The transferee must meet the established standards for new franchisees, be of good moral character, have a good credit rating, and possess sufficient financial resources to operate the business, as well as competent qualifications.
Additionally, the transferee is required to execute a new Franchise Agreement, which may include different terms and conditions than the original agreement, along with a Guaranty and Assumption of Obligations. The transferee must also pay a transfer fee equal to 50% of the then-current franchise fee, instead of paying the full franchise fee.
Furthermore, the transferee must agree to assume all liabilities and obligations from the prior operation of the agency, including the lease, and comply with any other reasonable requirements that All Team may impose. The transferee, or their management team including a designated manager, must also successfully complete the initial training program. Finally, the transferee is responsible for updating and remodeling the agency to meet the current standards set by All Team.