For what duration does the All Team Processing Agreement automatically renew?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
III. Term. This 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 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 Agreement immediately upon the expiration or termination of the Franchise Agreement or upon the expiration or termination of the Funding Agreement. ATFC shall have the right to increase any and all fees under this Agreement for any renewal period.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement has an initial term of three years from execution. After this initial term, the Processing Agreement automatically renews for additional one-year terms.
However, All Team has the right to terminate the Processing Agreement immediately if the Franchise Agreement or the Funding Agreement expires or terminates. This means that the renewal of the Processing Agreement is contingent upon the continuation of the Franchise Agreement and the Funding Agreement.
Additionally, All Team retains the right to increase any and all fees under the Processing Agreement for any renewal period. This implies that franchisees could face higher costs upon each one-year renewal, potentially impacting their profitability. Franchisees should factor in these potential fee increases when projecting their long-term financial performance.