In the event of a termination of the All Team Franchise Agreement due to the franchisee's material breach, what additional rights does ATFC have?

According to All Team's 2025 Franchise Disclosure Document, if the Franchise Agreement is terminated due to the franchisee's material breach or default, All Team has all rights and remedies available at law or in equity, in addition to the rights already outlined in the agreement. This means All Team can pursue legal action to seek damages or equitable relief beyond the standard termination procedures.

Upon termination, the franchisee must immediately stop using All Team's marks, signs, colors, structures, and advertising materials. They must also return any copyrighted materials provided by All Team. If requested, the franchisee must assign their telephone numbers, client and candidate lists, customer information, and employee roster to All Team and execute necessary documents to do so. The franchisee must cease providing services to all customers and candidates, forfeiting any rights to those customers and accounts. All Team can request the franchisee to assign customer contracts and candidates to All Team, who can then service the accounts or assign them to others.

Furthermore, the franchisee must pay all outstanding amounts to All Team, its affiliates, and suppliers. They must also return all materials containing confidential information, including the Confidential Operating Manual. The franchisee is required to cancel any assumed name registrations containing All Team's marks and provide evidence of compliance within 5 days of termination. All Team reserves the right to conduct a post-termination audit to verify financial reporting and compliance, and can withhold up to $10,000 in customer payments for up to 12 months after termination as a reserve for unpaid receivables and customer chargebacks. All Team also has the right to purchase the franchisee's equipment, inventory, and supplies at fair market value, determined by independent appraisals if the parties cannot agree.

All Team also has the right to operate the franchise business if the franchisee is unable to do so, to prevent interruption and harm to the business. Income from this operation will be kept in a separate account, with business expenses and compensation for All Team's agents charged to the account. Additionally, the franchisee irrevocably appoints All Team as their attorney-in-fact to execute documents related to these actions. These comprehensive rights ensure All Team can protect its business interests and maintain continuity after a franchisee's material breach.