What does the transferee need to assume from the prior operation of the All Team Agency?

According to All Team's 2025 Franchise Disclosure Document, a transferee—someone buying an existing All Team franchise—must agree to assume all liabilities and obligations from the prior operation of the agency. This includes assuming the lease and complying with any other reasonable requirements that All Team may impose.

This requirement means that the incoming franchisee is responsible for any existing debts, legal issues, or contractual obligations that the previous franchisee had. For example, if the previous franchisee had outstanding invoices with suppliers or was facing a lawsuit, the new franchisee would inherit those responsibilities. This is a significant consideration for anyone looking to buy an existing All Team franchise, as it necessitates a thorough due diligence process to uncover any potential liabilities.

Prospective franchisees should carefully review the previous owner's financial records, contracts, and legal history before finalizing the purchase. It would be prudent to seek legal and financial advice to fully understand the scope of the liabilities being assumed. This requirement is not uncommon in franchise transfers, as it ensures business continuity and protects the franchisor from potential disruptions.