Are there any exceptions to the requirement for All Team franchisees to provide information for financial performance representations?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall maintain its books and records in accordance with generally acceptable accounting principles, consistently applied.
If ATFC at any time desires to utilize a financial performance representation or similar document in connection with the sale of franchises, FRANCHISEE agrees to provide ATFC, at no cost, with such reasonable information as ATFC requires from FRANCHISEE in order to properly prepare such documents, and shall permit ATFC to utilize such information as it deems necessary.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are generally required to cooperate with All Team if the company desires to utilize financial performance representations in connection with the sale of franchises. This cooperation involves providing All Team with reasonable information from the franchisee's books and records at no cost. The franchisee must also allow All Team to use this information as deemed necessary. This obligation ensures that All Team can accurately prepare financial performance documents for potential franchisees.
This requirement means that as an All Team franchisee, you must maintain your financial records according to generally accepted accounting principles and be prepared to share this information with All Team. This includes providing income statements, balance sheets, and monthly/weekly income reports. The franchisor needs this data to create accurate financial representations for future franchisees.
While the FDD excerpt specifies the franchisee's duty to provide information, it does not explicitly state any exceptions to this requirement. Therefore, it is essential for prospective franchisees to clarify with All Team under what specific circumstances, if any, they might be exempt from providing such information. Understanding the scope of this obligation is crucial for managing expectations and ensuring compliance with the franchise agreement.