How long is the cure period All Team provides to franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ates or suppliers; failure of FRANCHISEE to open the Agency for business within four (4) months after ATFC's acceptance of this Agreement or failure of FRANCHISEE to operate both the Permanent Placement Business and Temporary Service Business within four (4) months after FRANCHISEE signed this Agreement. If termination is based on the foregoing, the FRANCHISEE shall be entitled 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; or (g) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
- B. Termination By FRANCHISEE. FRANCHISEE may terminate this Agreement if ATFC shall materially default in performance of any terms and conditions in this Agreement, after giving ATFC written notice within thirty (30) days thereof, and if the default has not been corrected 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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the cure period offered to franchisees varies depending on the reason for termination. Generally, All Team will provide a franchisee with at least 30 days prior written notice of termination, except as otherwise provided in the agreement, or unless a longer or shorter period is required or permitted by applicable state law. This notice will state the reasons for termination and allow the franchisee 30 days to correct any claimed deficiency. If the franchisee corrects the deficiency within this period, the termination notice is voided. However, if the deficiency remains uncorrected, All Team can proceed with termination by providing written notice.
However, there are instances where All Team may only grant a 10-day cure period, if permitted by applicable law. Additionally, there are specific circumstances under which All Team can terminate the franchise agreement immediately without any notice or opportunity to cure, assuming state law permits such action. These circumstances include conviction of a felony, fraudulent activity, abandonment of the franchise, bankruptcy or insolvency of the franchisee, termination of any other agreement between the franchisee and All Team, repeated failure to comply with the agreement (three or more times in a 12-month period), or any other act or omission that allows termination without notice under applicable state law.
Conversely, a franchisee also has the right to terminate the agreement if All Team materially defaults in its performance. In this case, the franchisee must provide All Team with written notice and 30 days to correct the default. If the default cannot be cured within 30 days, All Team is granted a longer period, provided they commence curing the default within the initial 30-day period and diligently pursue a resolution. This multi-tiered approach to cure periods means prospective franchisees need to understand the specific conditions that trigger different timelines or immediate termination to fully assess their obligations and risks under the franchise agreement.