factual

Under what condition will All Team not operate, franchise, or license an All Team agency in the franchisee's area?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

Subject to Section II.C (National/Regional Accounts), ATFC agrees that during the term of this Agreement, so long as FRANCHISEE is not in default under this Agreement, ATFC shall not operate or license or franchise any other person or entity the right to operate an ATFC agency in the Area.

Source: Item 22 — CONTRACTS (FDD pages 33–34)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, All Team agrees not to operate, franchise, or license any other person or entity the right to operate an All Team agency in the franchisee's designated area as long as the franchisee is not in default under the Franchise Agreement. This condition is subject to Section II.C, which pertains to National/Regional Accounts.

This agreement provides the franchisee with a degree of territorial protection, meaning All Team will not directly compete within the franchisee's specified area during the term of the agreement, provided the franchisee remains in compliance with all agreement terms. However, All Team retains specific rights, including the ability to operate or license businesses similar to the All Team agency under different marks anywhere, including within the franchisee's area. They can also operate or license businesses that are different than the business operated by the agency under the All Team marks or other marks, including within the area.

This territorial protection is a common feature in franchising, intended to give franchisees a defined market to develop their business. However, the exceptions All Team retains—such as operating similar businesses under different brand names—highlight the importance of carefully reviewing the franchise agreement to understand the true extent of the territorial protection offered. A prospective franchisee should consider the potential impact of these exceptions on their business and discuss any concerns with All Team before signing the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.