How does the transfer fee for an All Team franchise compare to the standard franchise fee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee pays a transfer fee of 50% of the then current Franchise Fee in lieu of the Franchise Fee;
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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the standard franchise fee is $42,500. The transfer fee for an existing All Team franchise is 50% of the then-current franchise fee. Therefore, if the franchise fee remains at $42,500 at the time of transfer, the transfer fee would be $21,250. This is significantly less than the initial franchise fee.
However, there is an exception to this general rule. If an All Team franchisee transfers the business to a corporation or limited liability company wholly owned by the franchisee (or all partners of a partnership franchisee), the transfer fee is $2,000.00. This is substantially lower than both the standard franchise fee and the typical transfer fee.
It is important to note that the transferee must meet certain conditions to be approved. The transferee must meet the established standards for new franchisees, be of good moral character, have a good credit rating, and have sufficient financial resources to operate the business. The transferee must also execute a new Franchise Agreement, which may contain different terms and conditions than the original agreement, and complete the initial training program. Additionally, the transferee must update and remodel the agency to comply with the then-current standards.