How many additional terms are available for renewal of the All Team Franchise Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | OTHER AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the franchise term | Section IV of the Franchise Agreement; Section III of the Funding Agreement; and Section III of the Processing Agreement | 10 years from signing the Franchise Agreement. Funding Agreement and Processing Agreement are 3 years from execution. |
| b. Renewal or extension | Section IV of the Franchise Agreement; Section III of the Funding Agreement; Section III of the Processing Agreement | 2 additional terms for 10 years each for the Franchise Agreement. Funding Agreement and Processing Agreement automatically renew for additional 1 year terms. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee has the option to renew the franchise agreement for two additional terms, each lasting 10 years. This is contingent upon the franchisee being in full compliance with the terms of the agreement at the time of renewal.
However, All Team retains the discretion to refuse renewal if the franchisee has received more than three default notices during the initial term or any renewal term, even if these defaults were subsequently resolved and the franchisee is not in default at the time of renewal. To initiate the renewal, the franchisee must provide All Team with written notice of their intent to renew, no less than six months and no more than eighteen months before the end of the current term.
In addition to providing timely notice, the franchisee must also pay a renewal fee equivalent to 25% of the then-current franchise fee. The franchisee is also required to remodel the agency to meet the current standards and execute a general release of claims against All Team. This release, to the extent permitted by law, covers any claims arising from the franchise agreement or related agreements.
Prospective franchisees should be aware of these conditions for renewal, as they involve significant financial investment for the remodel and renewal fee, adherence to the franchise agreement, and potential legal implications related to the release of claims. The possibility of non-renewal due to past defaults, even if cured, adds another layer of risk that franchisees should consider.