What business practices are considered illegal, fraudulent, unfair, or deceptive by All Team that could adversely affect the franchise and lead to termination?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) Engages in any illegal, fraudulent, unfair or deceptive business practice, which, in ATFC's opinion, adversely affects the operation, maintenance, or goodwill of the franchise; or
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, engaging in illegal, fraudulent, unfair, or deceptive business practices can lead to the termination of the franchise agreement if, in All Team's opinion, these practices adversely affect the operation, maintenance, or goodwill of the franchise. This provision grants All Team the authority to determine what constitutes an adverse effect, giving them considerable discretion in deciding whether to terminate an agreement based on such practices.
This clause highlights the importance of ethical and legal compliance for All Team franchisees. Franchisees must ensure their business operations adhere to all applicable laws and regulations and avoid any practices that could be construed as fraudulent or deceptive. The potential consequences of engaging in such practices extend beyond legal penalties, including the risk of losing the franchise.
Prospective All Team franchisees should carefully consider this provision and seek legal counsel to fully understand their obligations and the potential ramifications of non-compliance. It is crucial to maintain transparent and ethical business practices to safeguard the franchise investment and avoid disputes with All Team.