Can an All Team USER assign or transfer the Processing Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Assignment. This Processing Agreement is personal to USER and shall not be assignable or transferable by USER, in whole or in part, either voluntarily or by operation of law, except with the prior written consent of ATFC, which consent shall not unreasonably be withheld.
For all purposes of this Processing Agreement, the transfer of the majority of the equity of USER to persons other than the present owners thereof, or of any substantial portion of the Business in one or more transactions, shall be deemed an assignment of this Processing Agreement requiring such consent.
Any assignment must be in conjunction with a corresponding assignment under the Franchise Agreement.
This Processing Agreement is fully assignable by ATFC.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement is personal to the USER (franchisee) and cannot be assigned or transferred, either voluntarily or by law, without All Team's prior written consent. All Team agrees to not unreasonably withhold consent.
Furthermore, the transfer of the majority of the equity of the USER to new owners, or the transfer of a substantial portion of the business in one or more transactions, is considered an assignment of the Processing Agreement. This also requires All Team's consent.
Any assignment of the Processing Agreement by the All Team franchisee must occur alongside a corresponding assignment of the Franchise Agreement. However, All Team is permitted to fully assign the Processing Agreement to another party. This clause protects All Team by ensuring franchisees cannot unilaterally transfer their obligations to another party without approval, while also allowing All Team flexibility in its own business operations.