What happens if an All Team franchisee does not pay fees by the due date?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
e acts and sign the documents, including authorization forms that are required to accomplish payment by EFT. In addition, FRANCHISEE shall pay all costs associated with utilizing any payment program established by ATFC. FRANCHISEE is also responsible for all credit card fees.
- G. Interest. If any or all of the amounts due under this Agreement are not paid when due, ATFC shall have the right to charge interest on late payments equal to the lesser of one and one-half percent (1½%) per month or the maximum legal rate in the jurisdiction where the Agency is located. FRANCHISEE acknowledges that the foregoing does not constitute ATFC agreement to accept payments after same are due or a commitment by ATFC to extend credit to, or otherwise finance FRANCHISEE's operation of the Agency. ATFC's right to interest is in addition to any other remedies that ATFC may have.
- H. Taxes. FRANCHISEE agrees to indemnify and/or reimburse ATFC and its affiliates for all capital, gross receipts, sales, and other taxes and assessments imposed by any applicable state or local governmental authority as a result of the conduct of the Agency's business or the license of any of ATFC's or its affiliates' intangible property to FRANCHISEE (whether required to be paid by ATFC or its affiliates, withheld by FRANCHISEE or otherwise). FRANCHISEE's obligation to indemnify or reimburse ATFC or its affiliates for these taxes does not extend to income-type taxes which a state or local government imposes on ATFC or its affiliates' income
- I. Application of Payments. ATFC has the sole discretion to apply any payments by FRANCHISEE or made on behalf of FRANCHISEE to any past due indebtedness of FRANCHISEE for any of the fees or amounts due under this Agreement, the Processing Agreement and the Funding Agreement.
- J. No Right of Offset. FRANCHISEE agrees to make prompt payment, without deduction or set-off, of all charges which are properly due, including any or all of the Fees.
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 fails to pay amounts due under the franchise agreement when due, All Team has the right to charge interest on the late payments. This interest will be equal to the lesser of 1.5% per month or the maximum legal rate in the jurisdiction where the All Team agency is located. All Team emphasizes that this right to charge interest does not obligate them to accept late payments or extend credit to the franchisee.
All Team also has the sole discretion to apply any payments made by a franchisee to any past due debts the franchisee owes for any fees or amounts due under the Franchise Agreement, the Processing Agreement, and the Funding Agreement. The franchisee is expected to make prompt payments of all charges that are properly due, including all fees, without any deduction or offset. The franchisee cannot withhold payments due to All Team based on any claim of non-performance by All Team.
Furthermore, the FDD states that All Team may terminate the franchise agreement if the franchisee fails to pay sums due to All Team, its affiliates, or suppliers. However, All Team will provide the franchisee with at least thirty days prior written notice of termination, unless a longer or shorter period is required or permitted by applicable state law. The notice will state the reason for termination and allow the franchisee thirty days to correct the deficiency. If the deficiency is corrected within this period, the notice is void; otherwise, All Team may proceed with termination.