What is the consequence if an All Team franchisee breaches the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The occurrence of the same or a similar breach by USER, even if subsequently cured, twice within any twelve (12) month period shall give ATFC the right to terminate this Agreement immediately upon giving written notice to USER specifying the nature of such breach, without any opportunity to cure.
Upon the termination or expiration of the Franchise Agreement or the termination of the Processing Agreement, for any reason, ATFC shall have the right to terminate this Agreement immediately upon written notice to USER.
- B. Default by ATFC. In the event of a breach of any of the terms hereof by ATFC, which breach is not cured within ten (10) days of written notice to ATFC and Centennial specifying the nature of such breach, USER may, at its election, terminate this Funding Agreement and such termination shall be effective upon the expiration of the ten (10) day cure period.
Notwithstanding the foregoing, at no time during or after the term of this Funding Agreement shall USER exercise any right of set-off, defense or counterclaim against any amounts owing to ATFC hereunder.
- C. Post-Termination Obligations. USER shall, upon termination or expiration of this Funding Agreement for any reason, pay in full upon demand, by certified or bank cashier's check, all Accounts Receivable remaining unpaid as of the date of such termination.
Upon receipt of such payment and subject to ATFC's right to offset any damages or losses for which USER is liable to indemnify or reimburse ATFC hereunder, ATFC shall reassign to USER any security interest or other interest which ATFC may have in USER's collateral.
Notwithstanding any termination of this Funding Agreement, until such time as full payment is made by USER to ATFC of all sums due to ATFC under this Funding Agreement, USER shall continue to perform all of its obligations pursuant to the terms of this Funding Agreement with regard to such Accounts Receivable.
No termination of this Funding Agreement, under any circumstances, shall release or discharge USER from its continuing obligations hereunder.
Upon the termination or expiration of this Funding Agreement for any reason other than as a result of USER's termination right, ATFC will require USER to discontinue use of the Software on ATFC's servers.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee (referred to as USER in the document) commits the same or a similar breach of the Funding Agreement twice within a 12-month period, All Team Franchise Corporation (ATFC) has the right to terminate the agreement immediately. This termination is effective upon written notice specifying the nature of the breach, and the franchisee does not have an opportunity to cure the breach.
Additionally, All Team can terminate the Funding Agreement immediately upon written notice if the Franchise Agreement or the Processing Agreement is terminated or expires for any reason. However, if All Team breaches the Funding Agreement, the franchisee can terminate the agreement if All Team does not cure the breach within ten days of written notice.
Upon termination or expiration of the Funding Agreement, the franchisee is obligated to pay all outstanding Accounts Receivable. After receiving this payment, All Team will reassign any security interest in the franchisee's collateral, subject to All Team's right to offset any damages or losses. The franchisee must continue to fulfill its obligations regarding the Accounts Receivable until full payment is made, and no termination releases the franchisee from these continuing obligations. Upon termination, All Team will require the franchisee to discontinue use of the software on All Team's servers.