Under what condition will All Team make an assignment of contract?

According to All Team's 2025 Franchise Disclosure Document, All Team will assign a contract only to an assignee who, in All Team's good faith and judgment, is both willing and financially able to fulfill All Team's obligations under the Franchise Agreement. This means that if All Team decides to transfer its rights and responsibilities under the franchise agreement to another party, that party must meet specific criteria to ensure the continuity and stability of the franchise system.

For a prospective franchisee, this condition offers a degree of protection. It suggests that All Team cannot simply assign the agreement to any entity. All Team must vet the potential assignee to ensure they are capable of meeting the obligations, which could include maintaining the brand standards, providing necessary support, and upholding the terms of the franchise agreement. This requirement aims to prevent the franchise from falling into the hands of an incapable or unstable entity, which could negatively impact the franchisee's business.

However, the FDD states that the assignee must be acceptable based on All Team's "good faith and judgment," which introduces a subjective element. While this allows All Team to consider factors beyond pure financials, it also means that the decision is at All Team's discretion. A prospective franchisee might want to inquire about the specific criteria All Team uses to evaluate potential assignees to better understand the process and potential outcomes.

In the franchise industry, it is common for franchisors to retain the right to assign contracts, but the condition that the assignee be willing and financially able is a reasonable safeguard. Franchisees should carefully consider this provision and discuss any concerns with All Team during their due diligence to fully understand their rights and the franchisor's obligations in the event of an assignment.