Under what conditions can All Team revoke approval of particular items or suppliers for All Team franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall purchase and/or lease all products, services, supplies, computer software and hardware, equipment and materials required for the operation of the business from manufacturers, suppliers, or distributors designated by ATFC, or from other suppliers who meet ATFC's specifications and are able to provide products and equipment in accordance with the standards as to quality, appearance and service, and who adequately demonstrate their ability to supply the franchise needs in a timely and reliable manner. Specification of a supplier may be conditioned on requirements relating to, among other things, frequency of delivery, standards of services, including prompt attention to complaints, as well as payments, contributions, or other consideration to ATFC or its affiliates, any advertising fund and/or otherwise, and may be temporary, in each case in ATFC's reasonable discretion. ATFC may, from time-to-time withhold, condition and/or revoke ATFC's approval of particular items or suppliers in its reasonable discretion. ATFC or its affiliates may receive rebates, commissions, promotional allowances and other benefits from suppliers in relation to items purchased by FRANCHISEE and other franchisees. ATFC has the right to condition or revoke Franchisee's right to participate in any supplier programs if FRANCHISEE is in default under this Agreement. Some of the approved suppliers may be affiliated with ATFC.
ATFC may require that samples from other suppliers of any products to be used by FRANCHISEE be delivered to ATFC for testing prior to approval and use. A charge not to exceed the actual cost of the test may be made by ATFC or by an independent testing laboratory designated by ATFC and shall be paid by FRANCHISEE. ATFC shall advise FRANCHISEE within a reasonable period of time of its approval or disapproval of alternate sources of products, services, supplies, suppliers, materials and equipment. The foregoing shall not be construed as an attempt to unreasonably limit the sources from which FRANCHISEE may procure its products, services, supplies and materials. Rather, it is the intention of ATFC that such items conform to ATFC's strict standards and strict specifications as to consistent quality, uniformity and reliability. Further, ATFC shall not be required to approve an inordinate number of suppliers of a given item which in the reasonable judgment of ATFC would prevent effective supervision of suppliers by ATFC.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team may, from time to time, withhold, condition, and/or revoke its approval of particular items or suppliers in its reasonable discretion. This means that All Team has the authority to change its approved supplier list or the approved items franchisees are required to purchase.
This discretion allows All Team to maintain quality control and consistency across all franchise locations. However, it also means that franchisees may be required to switch suppliers or purchase new items, potentially incurring additional costs. The FDD also states that specification of a supplier may be conditioned on requirements relating to frequency of delivery, standards of services (including prompt attention to complaints), payments, contributions, or other consideration to All Team or its affiliates, any advertising fund and/or otherwise, and may be temporary.
All Team or its affiliates may also receive benefits such as rebates, commissions, and promotional allowances from suppliers based on franchisee purchases. All Team also has the right to condition or revoke a franchisee's right to participate in any supplier programs if the franchisee is in default under the Franchise Agreement. Franchisees should be aware that some approved suppliers may be affiliated with All Team, potentially creating a conflict of interest if those suppliers are not the most competitive or reliable.
All Team may also require franchisees to submit samples from alternative suppliers for testing, with the franchisee bearing the cost of these tests. All Team will advise the franchisee of its approval or disapproval within a reasonable time frame. While All Team intends for franchisees to procure products that conform to strict standards for quality, uniformity, and reliability, it also states that it will not approve an inordinate number of suppliers for a given item if it would prevent effective supervision of suppliers by All Team.