Is All Team subject to a currently effective restrictive order relating to the franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, Item 22 clarifies whether certain parties associated with the franchise are subject to any restrictive orders. Specifically, it states that no party, including the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under All Team's trademark, is subject to a currently effective injunctive or restrictive order relating to the franchise.
This extends to orders under federal, state, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from actions brought by a public agency. It also confirms that these parties are not subject to any orders from national securities associations or exchanges, nor any injunctive or restrictive orders related to other business activities resulting from public agency actions, including those affecting real estate licenses.
For a prospective All Team franchisee, this indicates that the franchisor and its related parties are in good standing with regulatory bodies and are not currently operating under any legal restrictions that could impact the franchise system. This can be seen as a positive sign, suggesting a stable and compliant franchise organization. However, it is important to note that this statement only reflects the current status and does not guarantee future compliance. A prospective franchisee should still conduct thorough due diligence to assess the overall risk associated with investing in an All Team franchise.