What happens after an All Team franchisee's third violation of National/Regional Account requirements?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
agreement between ATFC and the National/Regional account customer to the extent within their operational control; (iii) comply with any and all audits required by the National/Regional account customer; and (iv) and sign any document required by the National/Regional account customer. Uniformity and quality of services offered by all ATFC agencies to National/Regional Accounts is of utmost importance to ATFC and the entire System. If FRANCHISEE violates the National/Regional Account requirements described herein and in the Manual, FRANCHISEE agrees that ATFC will be damaged. These damages will be calculated at $1,000 for the first violation, $2,500 for the second violation and $5,000 for the third violation. After the third violation, FRANCHISEE may no longer be permitted to service National/Regional Accounts. ATFC has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under this Agreement. FRANCHISEE agrees that a precise calculation of the ful
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee faces specific consequences for violating National/Regional Account requirements. The document emphasizes the importance of uniformity and quality of services provided to these accounts.
After a third violation of these requirements, the All Team franchisee may no longer be permitted to service National/Regional Accounts. Prior to this, the franchisee incurs damages of $1,000 for the first violation and $2,500 for the second. The third violation results in damages of $5,000.
All Team retains the right to collect these amounts, in addition to any other rights they may have for non-compliance under the Franchise Agreement. The agreement specifies that calculating the full extent of damages from improper servicing is difficult, so the parties agree that these amounts are reasonable liquidated damages rather than a penalty.