Under what condition can an All Team franchisee assign or transfer the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Funding Agreement is personal to USER and shall not be assignable or transferable by USER, in whole or in part, either voluntarily or by operation of law, except with the prior written consent of ATFC with a copy to Centennial, which consent shall not unreasonably be withheld.
For all purposes of this Funding Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Funding Agreement requiring such consent.
Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement and the Processing Agreement.
This Funding Agreement is fully assignable by ATFC.
- F. Successors and Assigns. This Funding Agreement shall be binding upon and shall inure to the benefit of ATFC and USER, and their permitted successors and assigns.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement is personal to the franchisee (referred to as USER) and cannot be assigned or transferred, either voluntarily or by operation of law, without the prior written consent of All Team (ATFC) and with a copy to Centennial. This consent will not be unreasonably withheld.
Furthermore, the transfer of the majority of the equity of the franchisee to individuals other than the current owners, or the transfer of a substantial portion of the business in one or more transactions, is considered an assignment of the Funding Agreement and requires consent from All Team. Any assignment of the Funding Agreement must occur in conjunction with a corresponding assignment under both the Franchise Agreement and the Processing Agreement.
All Team, however, has the right to fully assign the Funding Agreement. The Funding Agreement is binding upon and benefits All Team and the franchisee, as well as their permitted successors and assigns.