Under the All Team agreement, does the definition of 'Inventory' include raw materials?

According to All Team's 2025 Franchise Disclosure Document, the definition of 'Inventory' within the franchise agreement explicitly includes raw materials. Specifically, 'Inventory' encompasses any goods held by the franchisee for sale or lease, goods furnished or to be furnished under a contract for service, and goods that are raw materials, work in process, or materials used or consumed in the franchisee's business. This definition is important for franchisees to understand, as it clarifies what assets are considered inventory under the agreement.

This definition has implications for various aspects of the franchise operation. For example, it affects how the franchisee values their assets for accounting purposes, and it also plays a role in determining what All Team has the right to purchase from the franchisee upon termination or expiration of the agreement. The inclusion of 'raw materials' in the definition of inventory means that these materials are subject to the same terms and conditions as other types of inventory.

Prospective All Team franchisees should carefully consider this definition and its implications for their business. Understanding what constitutes inventory is crucial for managing assets, complying with the franchise agreement, and planning for potential scenarios such as termination or transfer of the franchise. Franchisees should also be aware of All Team's rights regarding the purchase of inventory upon termination or expiration of the agreement, as outlined in the FDD.