What are the All Team franchisee's obligations upon termination or non-renewal of the Franchise Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
rected 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. FRANCHISEE shall immediately thereafter discontinue use of all Marks, signs, colors, structures, printed goods and forms of advertising indicative of ATFC's business and return any copyrighted materials which have been provided to FRANCHISEE by ATFC, and if ATFC requests, shall assign its telephone numbers to ATFC, clients, candidates, customers and the employee roster and execute any and all documents necessary to do so. FRANCHISEE will immediately cease providing services to all customers and candidates and forfeit any rights it may have to the customers, candidates and any customer accounts. Upon request of ATFC, FRANCHISEE will assign to ATFC any or all of FRANCHISEE'S customer contracts and candidates and ATFC will have the right to either service the accounts or assign the servicing of the accounts to others. Further, FRANCHISEE shall pay all amounts due to ATFC, ATFC's affiliates, and suppliers. Further, FRANCHISEE agrees to return any and all materials which contain Confidential Information in whatever form, including but not limited to the Confidential Operating Manual, to ATFC immediately. FRANCHISEE shall cancel any assumed name registration or equivalent registration obtained by FRANCHISEE which contains the Marks and FRANCHISEE shall furnish ATFC with evidence satisfactory to ATFC of compliance with this obligation within 5 days of the termination, expiration or Transfer. ATFC reserves the right to conduct a post termination audit
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, upon termination or expiration of the Franchise Agreement, the franchisee's rights are terminated. The franchisee must immediately stop using All Team's marks, signs, colors, structures, printed goods, and advertising. They must also return any copyrighted materials provided by All Team. If requested by All Team, the franchisee must assign their telephone numbers, client and candidate lists, customer lists, and employee roster to All Team, and execute any necessary documents to do so.
Furthermore, the All Team franchisee must immediately cease providing services to all customers and candidates, forfeiting any rights to those customers, candidates, and customer accounts. Upon All Team's request, the franchisee will assign customer contracts and candidates to All Team, which can then service the accounts or assign them to others. The franchisee is also obligated to pay all amounts due to All Team, its affiliates, and suppliers. All materials containing confidential information, including the Confidential Operating Manual, must be returned to All Team immediately.
The franchisee must cancel any assumed name registrations containing All Team's marks and provide satisfactory evidence of compliance to All Team within 5 days of termination, expiration, or transfer. All Team retains the right to conduct a post-termination audit to verify the accuracy of financial reporting, receivables, and compliance with client requirements.
Finally, All Team will withhold up to $10,000 in customer payments pending the result of the audit, or for up to 12 months after termination, as a reserve for unpaid receivables and customer chargebacks. This comprehensive list of obligations ensures that All Team can protect its brand, customer relationships, and financial interests following the end of a franchise agreement.