Must the transferee assume all liabilities from the prior operation of the All Team agency?

According to All Team's 2025 Franchise Disclosure Document, a transferee must agree to assume all liabilities and obligations from the prior operation of the agency, including the lease. This requirement is one of the conditions that All Team sets for approving a sale, transfer, or change in ownership of an All Team franchise.

This means that if you are considering purchasing an existing All Team franchise, you will be responsible for any outstanding debts, legal issues, or other obligations that the previous owner incurred while operating the business. This could include unpaid rent, supplier bills, or even pending lawsuits. It is crucial to conduct thorough due diligence before completing the purchase of an All Team franchise to fully understand the extent of the liabilities you will be assuming.

Prospective franchisees should carefully review the previous owner's financial records, contracts, and legal history to assess the potential risks. It would be prudent to consult with a legal and financial advisor to evaluate the implications of assuming these liabilities and to negotiate appropriate protections or indemnifications in the purchase agreement. This requirement ensures that All Team maintains the integrity of its brand and protects itself from potential legal or financial repercussions stemming from the previous franchisee's actions.