What are some examples of non-curable defaults for an All Team franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained herein to the contrary, if state law permits, ATFC shall be permitted to terminate the franchise immediately and without notice when the basis or grounds for cancellation is: (a) conviction of a felony or any other criminal misconduct which, in ATFC's opinion materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which, in ATFC's opinion, materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the termination of any other agreement between FRANCHISEE and ATFC or its affiliates; (f) repeated failure or refusal to comply with the lawful provisions of this Agreement, (i.e., three (3) or more times in any twelve (12) month period) whether or not such failures or refusals are corrected after notice; or (g) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
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, there are specific instances where All Team can terminate a franchise agreement immediately without allowing the franchisee an opportunity to correct the issue. These non-curable defaults include conviction of a felony or any other criminal misconduct that negatively impacts the franchise's operation, maintenance, reputation, or goodwill.
Another non-curable default involves fraudulent activity that similarly affects the franchise's operation, maintenance, reputation, or goodwill. Abandonment of the franchise, bankruptcy or insolvency of the franchisee, or the termination of any other agreement between the franchisee and All Team or its affiliates also constitute grounds for immediate termination.
Additionally, if a franchisee repeatedly fails or refuses to comply with the lawful provisions of the Franchise Agreement three or more times within a twelve-month period, regardless of whether the issues were corrected after notice, All Team can terminate the agreement without an opportunity to cure. Finally, any other act or omission that permits termination without notice and/or an opportunity to cure under applicable state law also falls under this category.