What is the cure period All Team provides to the user for a breach of the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Default by USER. In the event of a breach of any of the terms of this Funding Agreement by USER, if the breach is not cured within ten (10) days of written notice to USER specifying the nature of such breach, ATFC may, in addition to pursuing any other remedies it may have, at its election, suspend its performance hereunder until the breach is cured or terminate this Agreement.
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.
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) breaches any terms of the Funding Agreement, All Team (ATFC) will provide a written notice specifying the nature of the breach. The franchisee then has ten days from the date of the notice to cure the breach. If the franchisee fails to cure the breach within this ten-day period, All Team has the option to suspend its performance under the agreement or terminate the Funding Agreement altogether, in addition to pursuing any other available remedies.
However, All Team can terminate the Funding Agreement immediately without any opportunity to cure if the franchisee commits the same or a similar breach twice within a 12-month period, even if the breaches were previously cured. This immediate termination is triggered by written notice from All Team specifying the nature of the repeated breach.
This aspect of the Funding Agreement is important for prospective All Team franchisees to understand, as it outlines the conditions under which their funding can be suspended or terminated. Franchisees should be diligent in adhering to the terms of the Funding Agreement to avoid breaches and the potential consequences, including the loss of funding and the immediate termination of the agreement in cases of repeated breaches.