Under what condition will All Team assign its contract to another party?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
"Assignment of contract by franchisor":
However, no assignment will be made except to an assignee who in good faith and judgment of the franchisor, is willing and financially able to assume the franchisor's obligations under the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team can assign its franchise agreement to another party if the assignee is willing and financially able to assume All Team's obligations under the Franchise Agreement. The FDD states that All Team will only make such an assignment to an assignee who, in All Team's good faith judgment, meets these criteria.
This means that if All Team decides to transfer its rights and responsibilities under the franchise agreement to a different company or individual, it must ensure that the new party is both willing to take on those obligations and has the financial resources to fulfill them. This protects the franchisee by ensuring that the party they are contracted with is capable of upholding their end of the agreement.
For a prospective All Team franchisee, this clause offers some security. It suggests that All Team cannot simply assign the agreement to any entity; they must vet the assignee for willingness and financial stability. However, the FDD does not provide specific details on how All Team assesses financial ability or what criteria they use, so it would be prudent for a potential franchisee to seek clarification on this process during their due diligence.