Does the All Team franchise agreement allow a franchisee to terminate the agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Termination By FRANCHISEE.
FRANCHISEE may terminate this Agreement if ATFC shall materially default in performance of any terms and conditions in this Agreement, after giving ATFC written notice within thirty (30) days thereof, and if the default has not been corrected within thirty (30) days after such notice, or if such default is incapable of being cured within thirty (30) days, such longer period of time as is necessary to cure such default, provided that ATFC has commenced curing such default within said thirty (30) day period and diligently pursues a cure.
- C.
Consequences of Termination.
Upon termination or expiration of this Agreement, for any reason whatsoever, all of FRANCHISEE's rights hereunder shall terminate.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee can terminate the franchise agreement if All Team materially defaults in the performance of any terms and conditions in the agreement. To do so, the franchisee must provide All Team with written notice of the default, allowing 30 days for All Team to correct the issue. If the default cannot be corrected within 30 days, the franchisee must allow All Team a longer period to cure the default, provided that All Team commences curing the default within the initial 30-day period and diligently pursues a resolution.
Conversely, All Team has the right to terminate the agreement by providing the franchisee with written notice. In certain situations, All Team can terminate the franchise immediately and without notice if permitted by state law. These situations include: conviction of a felony or any other criminal misconduct that materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; fraudulent activity that similarly affects the franchise; abandonment of the franchise; bankruptcy or insolvency of the franchisee; termination of any other agreement between the franchisee and All Team or its affiliates; repeated failure or refusal to comply with the lawful provisions of the agreement (three or more times in any 12-month period), regardless of whether such failures are corrected after notice; or any other act or omission that permits termination without notice and/or an opportunity to cure under applicable state law.
Upon termination or expiration of the agreement, all of the franchisee's rights under the agreement will terminate, regardless of the reason for termination or expiration. This means the franchisee will no longer have the right to operate the All Team franchise or use All Team's trademarks and systems. Prospective franchisees should carefully consider these termination provisions and seek legal counsel to fully understand their rights and obligations under the franchise agreement.