Does the expiration of the All Team Franchise Agreement relieve the franchisee of all obligations to ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The expiration or termination of this Agreement shall not relieve FRANCHISEE of any of FRANCHISEE's obligations to ATFC existing at the time of such expiration or termination, or terminate FRANCHISEE's obligations that, by their nature, survive the expiration or termination of this Agreement, including but not limited to the provisions regarding trade secrets, non-competition, non-solicitation and indemnification. Furthermore, the expiration or termination of this Agreement shall be without prejudice to ATFC's rights against FRANCHISEE; and in the event of a termination which is the result of FRANCHISEE's material breach or default under this Agreement, ATFC shall, in addition to its rights set forth above, also be entitled to all rights and remedies available at law or in equity.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the expiration or termination of the Franchise Agreement does not relieve the franchisee of all obligations to ATFC. The franchisee remains responsible for obligations existing at the time of expiration or termination. Certain obligations, such as those related to trade secrets, non-competition, non-solicitation, and indemnification, continue even after the agreement ends. This means that even after the franchise agreement expires or is terminated, the franchisee must still adhere to these specific terms.
This provision protects All Team's interests by ensuring that franchisees do not exploit confidential information or unfairly compete with the franchisor after the franchise relationship ends. It is a fairly standard practice in franchising to include clauses that survive the termination or expiration of the agreement, particularly concerning proprietary information and competitive activities.
Furthermore, the expiration or termination of the agreement does not prejudice All Team's rights against the franchisee. If the termination results from the franchisee's material breach or default, All Team retains all rights and remedies available at law or in equity. This could include pursuing legal action for damages or other forms of relief. Therefore, franchisees need to understand that certain responsibilities extend beyond the term of the agreement, and any breaches can have legal consequences even after the franchise relationship has ended.