What is the effect of Centennial's involvement in a breach of the All Team Funding Agreement by ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
milar breach by USER, even if subsequently cured, twice within any twelve (12) month period shall give ATFC the right to terminate this Processing 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, for any reason, ATFC shall have the right to terminate this Processing 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 specifying the nature of such breach, USER may, at its election, terminate this Processing Agreement and such termination shall be effective upon the expiration of the ten (10) day cure period.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if ATFC (All Team Franchise Corporation) breaches the Funding Agreement, the franchisee (USER) must provide written notice of the breach to both ATFC and Centennial Bank. The franchisee then has the option to terminate the Funding Agreement if ATFC fails to correct the breach within ten days of this written notice. This termination becomes effective at the end of the ten-day cure period.
However, even if ATFC breaches the agreement, the franchisee is not allowed to offset, defend, or counterclaim against any amounts owed to ATFC. This means the franchisee must continue to fulfill their financial obligations to ATFC, regardless of the breach.
Furthermore, the FDD states that if there is any conflict between the Funding Agreement and the Centennial Agreement, the Centennial Agreement will take precedence. Centennial Bank itself has no liability or obligation to the franchisee. This indicates that Centennial's interests and agreements with ATFC are prioritized, and the franchisee cannot seek recourse from Centennial for any issues arising from the Funding Agreement.