Are the terms of the non-compete agreement in the All Team Franchise Agreement assignable by ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms of this non-compete are assignable by ATFC and shall inure to the benefit of ATFC, as well as its successors and assigns. In the event of any assignment, sale, merger or change in ownership or structure of ATFC, the resulting entity shall step into the place of ATFC, without any additional consent of or notice to the FRANCHISEE, as if the term ATFC were defined in this Agreement to include such entity.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the terms of the non-compete agreement are assignable by All Team Franchise Corporation (ATFC). This means that ATFC has the right to transfer its rights and obligations under the non-compete agreement to another party. This is a standard practice in franchising, as it allows the franchisor to sell or transfer the franchise system without affecting the enforceability of the non-compete agreements.
Specifically, the FDD states that the terms of the non-compete agreement are assignable by ATFC and will benefit ATFC, its successors, and assigns. In the event of any assignment, sale, merger, or change in ownership or structure of ATFC, the resulting entity will assume the position of ATFC without needing additional consent from or notice to the franchisee. This ensures that the non-compete agreement remains in effect even if the ownership or structure of the All Team franchise changes.
For a prospective franchisee, this means that the non-compete obligations they agree to are not only for the benefit of the current All Team entity but also for any future entity that may take its place. This is an important consideration, as it could impact the franchisee's future business opportunities if they decide to leave the All Team system. The franchisee should carefully consider the scope and duration of the non-compete agreement, as it will remain in effect even if the franchise is sold or transferred.