What happens if any other agreement between the All Team franchisee and All Team or its affiliates is terminated?
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 All Team's 2025 Franchise Disclosure Document, the termination or expiration of the Franchise Agreement does not relieve the franchisee of any obligations to All Team that existed at the time of termination. It also does not terminate any obligations that naturally survive the termination, including those related to trade secrets, non-competition, non-solicitation, and indemnification. This means that even after the agreement ends, the franchisee is still responsible for upholding these specific duties.
Furthermore, the termination or expiration of the All Team Franchise Agreement does not affect All Team's rights against the franchisee. If the termination results from the franchisee's material breach or default, All Team is entitled to all rights and remedies available at law or in equity, in addition to the rights already outlined in the agreement. This provision ensures that All Team can pursue legal action if the franchisee violates the agreement's terms.
In practical terms, this means that franchisees must continue to protect All Team's confidential information, avoid competing with All Team, and refrain from soliciting All Team's clients or employees even after the franchise agreement ends. The franchisee should be aware that All Team retains the right to take legal action to enforce these obligations if necessary. This section of the FDD highlights the lasting impact of certain contractual obligations, which extend beyond the active term of the franchise agreement.