Does the All Team franchise agreement constitute ATFC's agreement to accept payments after they are due?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
G. Interest. If any or all of the amounts due under this Agreement are not paid when due, ATFC shall have the right to charge interest on late payments equal to the lesser of one and one-half percent (1½%) per month or the maximum legal rate in the jurisdiction where the Agency is located. FRANCHISEE acknowledges that the foregoing does not constitute ATFC agreement to accept payments after same are due or a commitment by ATFC to extend credit to, or otherwise finance FRANCHISEE's operation of the Agency. ATFC's right to interest is in addition to any other remedies that ATFC may have.
- H. Taxes. FRANCHISEE agrees to indemnify and/or reimburse ATFC and its affiliates for all capital, gross receipts, sales, and other taxes and assessments imposed by any applicable state or local governmental authority as a result of the conduct of the Agency's business or the license of any of ATFC's or its affiliates' intangible property to FRANCHISEE (whether required to be paid by ATFC or its affiliates, withheld by FRANCHISEE or otherwise). FRANCHISEE's obligation to indemnify or reimburse ATFC or its affiliates for these taxes does not extend to income-type taxes which a state or local government imposes on ATFC or its affiliates' income
- I. Application of Payments.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchise agreement does not constitute an agreement by All Team to accept payments after they are due. The agreement also does not represent a commitment by All Team to extend credit or finance the franchisee's agency operations.
The FDD states that if any amounts due under the agreement are not paid when due, All Team has the right to charge interest on late payments. This interest will be the lesser of 1.5% per month or the maximum legal rate in the jurisdiction where the agency is located.
Furthermore, the acceptance of payments from the franchisee after any breach does not constitute a waiver of the franchisee's breach, nor does it limit All Team's ability to fully exercise its rights under the agreement as a result of the franchisee's breach. All Team retains the sole discretion to apply any payments received from the franchisee to any past due indebtedness for fees or amounts owed under the Franchise Agreement, Processing Agreement, and Funding Agreement.