Under what circumstances is an All Team franchisee required to assign their lease or sublease to ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon ATFC's request, FRANCHISEE shall assign to ATFC any interest that FRANCHISEE may have in any lease or sublease for the Agency. ATFC may exercise the option at or within thirty (30) days after either termination or expiration of this Agreement or within thirty (30) days of notice by FRANCHISEE's landlord of its intent to terminate the lease or sublease. In such event ATFC, in its sole discretion, shall have the right and is hereby empowered to take possession of the premises demised by the lease or sublease, expel FRANCHISEE therefrom, and, in such event, FRANCHISEE shall have no further right, title or interest in the lease or sublease. In the event that ATFC does not elect to exercise its option to acquire the lease or sublease for the premises, FRANCHISEE shall make such modifications or alterations to the premises of the Agency operated hereunder immediately upon termination or expiration as may be necessary to distinguish the appearance of such premises from that of other All Team agencies under the System and shall make such specific additional changes thereto as ATFC may reasonably request for that purpose. In the event FRANCHISEE fails or refuses to comply with the requirements of this paragraph, ATFC shall have the right to enter upon the premises without being guilty of trespass or any other tort for the purposes of making or causing to be made such changes as may be required as the expense of FRANCHISEE which expense FRANCHISEE agrees to pay upon demand.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee is required to assign their lease or sublease for their agency to ATFC under specific circumstances. ATFC has the option to request this assignment, which they can exercise either within 30 days after the termination or expiration of the Franchise Agreement, or within 30 days of receiving notice from the franchisee's landlord about their intent to terminate the lease or sublease.
If ATFC chooses to exercise this option, they have the right to take possession of the premises, expel the franchisee, and the franchisee will lose all rights to the lease or sublease. However, if All Team decides not to acquire the lease or sublease, the franchisee is obligated to modify the premises immediately after termination or expiration to differentiate it from other All Team agencies. These modifications must distinguish the appearance of the premises from other All Team locations, and the franchisee must also make any additional changes reasonably requested by All Team.
Should the franchisee fail to comply with these requirements, All Team has the right to enter the premises and make the necessary changes at the franchisee's expense, which the franchisee agrees to pay upon demand. This clause ensures that All Team can maintain control over the location and branding of its agencies, even after a franchise agreement ends, and protects its brand identity.