How does the All Team agreement renew after the initial term?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
III. Term. This Funding Agreement shall commence upon execution of this Agreement and shall continue for a term of three (3) years, unless terminated sooner in accordance with the terms of this Funding Agreement, and shall automatically be renewed for successive one (1) year periods thereafter unless ATFC gives USER written notice of termination at least sixty (60) but not more than one hundred twenty (120) days before the end of the then current term. ATFC has the right to terminate this Funding Agreement immediately upon the expiration or termination of the Franchise Agreement or upon the expiration or termination of the Centennial Agreement. ATFC shall have the right to increase any and all fees under this Agreement for any renewal period.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement has an initial term of three years, commencing upon execution. After the initial term, the agreement automatically renews for successive one-year periods.
However, All Team can prevent this automatic renewal by providing the franchisee with written notice of termination. This notice must be given at least 60 days, but no more than 120 days, before the end of the current term.
All Team also retains the right to increase any and all fees under the Funding Agreement for any renewal period, which could impact the franchisee's profitability and financial planning.