Upon termination or non-renewal, is the All Team franchisee required to direct transfer of phone?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
er such notice, or if such default is incapable of being cured within thirty (30) days, such longer period of time as is necessary to cure such default, provided that ATFC has commenced curing such default within said thirty (30) day period and diligently pursues a cure.
- C. Consequences of Termination. 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. Further, FRANCHISEE shall pay all amounts due to ATFC, ATFC's affiliates, and suppliers. Further, FRANCHISEE agrees to return any and all materials which contain Confidential Information in whatever form, including but not limited to the Confidential Operating Manual, to ATFC immediately. FRANCHISEE shall cancel any assumed name registration or equivalent registration obtained by FRANCHISEE which contains the Marks and FRANCHISEE shall furnish ATFC with evidence satisfactory to ATFC of compliance with this obligation within 5 days of the termination, expiration or Transfer. ATFC reserves the right to conduct a post termination audit
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee may be required to assign its telephone numbers to All Team. Specifically, if All Team requests, the franchisee must assign its telephone numbers, clients, candidates, customers, and the employee roster to All Team and execute any necessary documents to facilitate this transfer. This requirement applies regardless of the reason for termination or expiration of the agreement.
This stipulation is significant for prospective franchisees as it directly impacts their ability to continue operating a similar business independently after the franchise agreement ends. By assigning the telephone numbers to All Team, the franchisee loses a direct line of communication with existing clients and candidates, potentially hindering their ability to maintain those relationships in a new venture. This transfer of assets is a condition that the franchisee must comply with upon termination or expiration.
In addition to assigning telephone numbers, the franchisee must also discontinue using All Team's trademarks, signs, colors, and advertising materials. They must return any copyrighted materials provided by All Team and cease providing services to all customers and candidates, forfeiting any rights to customer accounts. These measures collectively ensure a clean break between the franchisee and the All Team brand, protecting All Team's interests and preventing potential confusion in the marketplace.
Furthermore, All Team reserves the right to conduct a post-termination audit to verify the accuracy of financial reporting and compliance with client requirements. They may also withhold up to $10,000 in customer payments for up to 12 months after termination as a reserve for unpaid receivables and customer chargebacks. These financial considerations highlight the importance of maintaining accurate records and fulfilling all obligations throughout the franchise term, as financial repercussions can extend beyond the termination date.