factual

Does the All Team franchise agreement limit the franchisee's legal grounds for termination?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. The following language replaces the "Summary" section of Item 17(d), titled

"Termination by franchisee":

You may terminate the agreement on any grounds available by law.

In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in MINN.

STAT.

CHAPTER 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.

Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.

Source: Item 23 — RECEIPT (FDD pages 34–161)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, the franchisee's legal grounds for termination are not limited, and in some states, are specifically protected by state law. For franchisees in New York, the FDD states that the franchisee may terminate the agreement on any grounds available by law. This ensures that franchisees are not restricted from exercising their legal rights to terminate the agreement if circumstances warrant it.

For franchisees operating in Minnesota, the disclosure states that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This provision ensures that Minnesota franchisees retain all rights and remedies available to them under state law, regardless of what the franchise agreement might otherwise stipulate.

Similarly, for franchisees in Virginia, the FDD includes a provision stating that if any grounds for default or termination stated in the Franchise Agreement does not constitute "reasonable cause" as defined in the Virginia Retail Franchising Act, that provision may not be enforceable. This protects franchisees from termination without reasonable cause, as defined by Virginia law. These state-specific addenda highlight All Team's commitment to complying with local franchise laws and ensuring franchisees' rights are protected, especially regarding termination.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.