What is the dependency between the All Team Franchise Agreement and the Processing Agreement regarding termination rights?

According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement's termination is directly linked to the status of the Franchise Agreement. Specifically, All Team has the right to terminate the Processing Agreement immediately upon the expiration or termination of the Franchise Agreement. This clause establishes a clear dependency, where the continuation of the Processing Agreement is contingent upon the Franchise Agreement remaining in effect.

This dependency has significant implications for a prospective All Team franchisee. If the Franchise Agreement is terminated, whether due to a breach by the franchisee or at the end of its term, the Processing Agreement will also be terminated by All Team. This means the franchisee will lose access to the billing and payroll processing services provided by All Team under the Processing Agreement, potentially disrupting their business operations.

Furthermore, the Processing Agreement outlines specific conditions under which All Team can terminate the agreement due to a breach by the franchisee (USER). If the franchisee fails to cure a breach within ten days of written notice, All Team can suspend performance or terminate the agreement. Repeated breaches within a twelve-month period, even if cured, also grant All Team the right to immediate termination. This highlights the importance of adhering to the terms of both the Franchise Agreement and the Processing Agreement to avoid potential disruptions to the franchisee's business operations.

It is important for prospective franchisees to fully understand the terms of both agreements and the potential consequences of termination. Franchisees should also consider the availability of alternative processing services in case the Processing Agreement is terminated.