Upon termination of the All Team franchise agreement, what happens to the franchisee's candidates?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, for any reason whatsoever, all of FRANCHISEE's rights hereunder shall terminate.
FRANCHISEE shall immediately thereafter discontinue use of all Marks, signs, colors, structures, printed goods and forms of advertising indicative of ATFC's business and return any copyrighted materials which have been provided to FRANCHISEE by ATFC, and if ATFC requests, shall assign its telephone numbers to ATFC, clients, candidates, customers and the employee roster and execute any and all documents necessary to do so.
FRANCHISEE will immediately cease providing services to all customers and candidates and forfeit any rights it may have to the customers, candidates and any customer accounts.
Upon request of ATFC, FRANCHISEE will assign to ATFC any or all of FRANCHISEE'S customer contracts and candidates and ATFC will have the right to either service the accounts or assign the servicing of the accounts to others.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 All Team Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must cease providing services to all candidates. The franchisee forfeits any rights to these candidates.
All Team has the right to request the franchisee to assign any or all of the franchisee's candidates to All Team. All Team then has the right to either service these accounts or assign the servicing of the accounts to others. This means that upon termination, the franchisee loses all rights to the candidates they were working with, and All Team can take over those relationships.
This clause is significant for prospective franchisees as it highlights the potential loss of business relationships built during the franchise term. It is a fairly standard practice in franchising to protect the brand's customer base, but franchisees should be aware that they may not be able to continue serving their existing clients if the franchise agreement ends. Franchisees should consider the value of the customer relationships they build and how this termination clause might impact their future business prospects.