What is the transfer fee for an All Team franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC will approve a sale, Transfer or change in ownership under the following conditions:
Transfer Fee.
The transferee pays a transfer fee of 50% of the then current Franchise Fee in lieu of the Franchise Fee;
- D.
Transfer to a Corporation or Limited Liability Company.
If FRANCHISEE is an individual or partnership, ATFC will consent to an assignment if FRANCHISEE transfers the business and rights under this Agreement to a corporation or limited liability company which is wholly owned by the FRANCHISEE (or all the partners of a partnership FRANCHISEE), provided that the corporation assumes all liabilities and obligations under this Agreement and pays a transfer fee of Two Thousand Dollars ($2,000.00) to ATFC, to defray the transfer costs and expenses.
No fee will be charged on a Transfer pursuant to this Section.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the transfer fee depends on the type of transfer. For a standard transfer to a new franchisee, the transfer fee is 50% of the then-current franchise fee. Given that the initial franchise fee is $42,500, the transfer fee would be $21,250 if the current franchise fee remains the same. The transferee must also meet several conditions, including governmental compliance, prior compliance by the franchisee, satisfaction of obligations to All Team, execution of a general release, meeting All Team's standards for new franchisees, assuming all liabilities, completing the initial training program, and updating/remodeling the agency to current standards.
However, if the transfer is from an individual or partnership franchisee to a corporation or limited liability company wholly owned by the franchisee (or all partners of a partnership franchisee), the transfer fee is $2,000. This fee is intended to cover All Team's transfer costs and expenses. In this scenario, the franchisee and their spouse (or all partners and their spouses) must execute a personal guaranty and assumption of obligations to ensure the corporation or LLC complies with the franchise agreement and personally supervise the agency's operation.
Notably, no transfer fee is charged if the franchisee transfers the franchise to a designated heir upon the franchisee's death or incapacity, provided the heir meets All Team's standards for new franchisees, executes the current franchise agreement, and ensures a manager completes the initial training program. Also, if the franchisee was incorporated prior to the purchase of the franchise, no transfer fee is required, but personal guarantees from the owners and their spouses are necessary. These variations highlight the importance of understanding the specific circumstances of any transfer and their associated costs and requirements.