Must the transferee execute a new Franchise Agreement for an All Team franchise transfer?

According to All Team's 2025 Franchise Disclosure Document, a transferee is required to execute a new Franchise Agreement as part of the transfer process. This new agreement may contain different terms and conditions than the original agreement. Additionally, the transferee must also execute a Guaranty and Assumption of Obligations.

Besides executing a new agreement, the transferee must meet several other requirements to be approved by All Team. These include meeting the standards for new franchisees, demonstrating good moral character and a good credit rating, possessing sufficient financial resources to operate the business, and having competent qualifications. The transferee must also complete the initial training program, update and remodel the agency to comply with current standards, and agree to assume all liabilities and obligations from the prior operation of the agency, including the lease.

Furthermore, the transferee is responsible for paying a transfer fee equal to 50% of the then-current franchise fee, in lieu of paying the full franchise fee. All Team also has the discretion to require the original franchisee and any guarantors to remain liable for the obligations of the assignee, even after the transfer is approved. This comprehensive set of requirements ensures that any new franchisee is well-prepared and financially stable, protecting the All Team brand and franchise system.

These transfer conditions are fairly typical in franchising, as franchisors want to ensure that new owners are qualified and committed to maintaining brand standards. The requirement of a new Franchise Agreement allows All Team to update the terms and conditions to reflect current policies and legal requirements, which is a common practice in franchise transfers.