Which of the franchisee's obligations survive the termination of the All Team franchise agreement?
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 the 2025 All Team Franchise Disclosure Document, the expiration or termination of the Franchise Agreement does not relieve the franchisee of obligations existing at the time of termination. Certain obligations, by their nature, continue even after the agreement ends. These include provisions related to trade secrets, non-competition, non-solicitation, and indemnification.
This means that even after an All Team franchise agreement concludes, the franchisee remains bound by specific duties designed to protect All Team's proprietary information and business interests. For example, the franchisee cannot disclose confidential information or solicit employees or customers, and must indemnify All Team against certain liabilities.
Furthermore, the 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 under law or equity. This ensures that All Team can pursue legal action to address any damages or losses resulting from the franchisee's misconduct, even after the franchise relationship has ended.