What happens if an All Team franchisee abandons the franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ntitled to written notice of default, but ATFC shall [if permitted by applicable law] be required to grant FRANCHISEE only ten (10) days to remedy such default. ATFC has the right to termination this Agreement upon providing FRANCHISEE written notice of said termination.
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- Without Opportunity to Cure. Notwithstanding anything contained herein to the contrary, if state law permits, ATFC shall be permitted to terminate the franchise immediately and without notice when the basis or grounds for cancellation is: (a) conviction of a felony or any other criminal misconduct which, in ATFC's opinion materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which, in ATFC's opinion, materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the termination of any other agreement between FRANCHISEE and ATFC or its affiliates; (f) repeated failure or refusal to comply with the lawful provisions of this Agreement, (i.e., three (3) or more times in any twelve (12) month period) whether or not such failures or refusals are corrected after notice;
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee abandons the franchise, All Team has the right to terminate the franchise agreement immediately and without providing any prior notice. This is contingent on state law permitting such immediate termination.
Upon termination of the franchise agreement, all rights of the franchisee are terminated. This means the franchisee loses the right to operate under the All Team brand and utilize its systems.
It is important to note that the franchise agreement outlines various other grounds for termination, some with an opportunity to cure and others without. Prospective franchisees should carefully review the termination provisions to understand their rights and obligations under the agreement.