Is abandonment a curable or non-curable default for an All Team franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained herein to the contrary, if state law permits, ATFC shall be permitted to terminate the franchise immediately and without notice when the basis or grounds for cancellation is: (a) conviction of a felony or any other criminal misconduct which, in ATFC's opinion materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which, in ATFC's opinion, materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the termination of any other agreement between FRANCHISEE and ATFC or its affiliates; (f) repeated failure or refusal to comply with the lawful provisions of this Agreement, (i.e., three (3) or more times in any twelve (12) month period) whether or not such failures or refusals are corrected after notice; or (g) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
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, abandonment of the franchise is considered a non-curable default. This means that All Team can terminate the franchise agreement immediately and without providing an opportunity for the franchisee to correct the issue, assuming it is permitted by state law. This is a significant point for prospective franchisees to understand, as it means that if All Team determines the franchisee has abandoned the business, the agreement can be terminated without a chance to remedy the situation.
Other grounds for immediate termination without opportunity to cure include conviction of a felony or any other criminal misconduct that materially and adversely affects the franchise's operation, fraudulent activity that similarly affects the franchise, bankruptcy or insolvency of the franchisee, termination of any other agreement between the franchisee and All Team or its affiliates, repeated failure or refusal to comply with the lawful provisions of the agreement (three or more times in any twelve-month period), or any other act or omission that permits termination without notice under applicable state law.
This policy is not uncommon in franchising, as certain breaches, such as abandonment or criminal activity, are deemed so detrimental to the brand and the franchise system that immediate termination is warranted. However, prospective franchisees should be fully aware of these terms and conditions before entering into an agreement with All Team. It is important to note that state laws may vary, and some states may have regulations that provide additional protections for franchisees in these situations.