Is an All Team franchisee required to sign a release upon renewal?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT OR OTHER AGREEMENT | SUMMARY |
|---|---|---|
| c. Requirement for franchisee to renew or extend | Section IV of the Franchise Agreement | Give notice, sign new franchise agreement that may contain terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements and territorial rights, sign a release, and pay fee. |
| d. Termination by franchisee | Section XII.B of the Franchise Agreement; Section X.B of the Funding Agreement; and Section V.B of the Processing Agreement; | If we breach agreement and do not cure or attempt to cure after notice. |
| e. Termination by franchisor without cause | Section III of the Funding Agreement | If the third-party funding agreement to which we are a party terminates or expires. |
| f. Termination by franchisor with cause | Sections VII.A, VIII.A and XII.A. of the Franchise Agreement; Section X. A. of the Funding Agreement and Section; and Section V.A. of the Processing Agreement | If you do not satisfactorily complete training, do not open within 4 months, do not open additional offices in timely fashion or generally if you breach agreement. Generally, if you breach any agreement you have with us or have the same or similar breach twice within a 12 month period. |
| THIS GENERAL RELEASE (the "General Release") is made by the undersigned (hereinafter "Releasor") for the benefit of All Team Franchise Corporation, a Florida corporation (hereinafter, "Franchisor"), on this day of, 20 |
|---|
| RECITALS: |
| WHEREAS, Releasor is an All Team franchisee and operates an All Team Agency (the |
| "Franchised Business") pursuant to that certain franchise agreement dated (the |
| "Franchise Agreement"); |
| WHEREAS, Releasor desires to renew its franchise with Franchisor or desires Franchisor's |
| consent to in connection with the Franchise Agreement; and |
| WHEREAS, certain states require certain changes be made to this General Release specific to such |
| state. |
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, Releasor hereby agrees, covenants and promises as follows:
Releasor, on behalf of itself and each of the persons and entities described in Section 2 hereof, hereby absolutely and forever releases, remises and discharges Franchisor and each of the persons and entities described in Section 3 hereof, from any and all claims, demands, damages, liabilities, costs (including, but not limited to reasonable attorneys' fees, accounting fees or experts' fees, and the costs of litigation, arbitration or other proceedings), expenses, liens, losses, charges, audits, investigations, injunctions, orders, rulings, subpoenas, controversies, obligations, debts, loans, interest, dues, accounts, awards, reckonings, bonds, bills, covenants, promises, undertakings, variances, trespasses, judgments, executions, sums of money owed, arbitrations, suits, decisions, proceedings, verdicts entered, issued, made or rendered and causes of action of every kind and nature whatsoever, whether now known or unknown, suspected or unsuspected, which Releasor now has, owns or holds, or at any time heretofore ever had, owned or held, or could, shall or may hereafter have, own or hold, pertaining to, arising out of or in connection with the Franchise Agreement, any related agreements or the franchisor-franchisee relationship between Releasor and Franchisor.
Notwithstanding the foregoing, if this General Release is entered into in conjunction with the renewal, assignment or transfer of the Franchise Agreement, the foregoing release shall not apply to any liability under any state franchise law which governs this Release.
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, a franchisee is required to sign a release as part of the renewal process. Specifically, Item 17c states that to renew the franchise agreement, a franchisee must give notice, sign a new franchise agreement (which may contain materially different terms), sign a release, and pay a fee.
The General Release included in Item 22 outlines the terms of the release. The franchisee, on behalf of themselves and related parties, releases All Team from all claims related to the Franchise Agreement or the franchisor-franchisee relationship. However, if the General Release is connected to a renewal, assignment, or transfer of the Franchise Agreement, the release does not apply to any liability under state franchise law governing the release.
This requirement to sign a release upon renewal is fairly common in franchising. The purpose is to prevent future legal claims against the franchisor related to the previous term of the agreement. However, the All Team FDD does provide an exception for liabilities under state franchise law if the release is connected to the renewal of the franchise agreement. Prospective franchisees should carefully review the release and understand its implications, especially concerning potential future claims against All Team.