How much advance written notice of termination, expiration, or cancellation of insurance policy must All Team franchisees ensure ATFC receives?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
going to place licensed medical professionals, FRANCHISEE will need to obtain additional professional liability insurance which will be described in greater detail in the Manual.
FRANCHISEE agrees to comply with any of changes to the insurance requirements, at FRANCHISEE's sole cost and expense. All general liability insurance policies will name ATFC, its affiliates and its successors and assigns, and National Accounts (as applicable) as additional insured and will provide that ATFC must receive thirty (30) days prior written notice of any termination, expiration or cancellation of the insurance policy. Each year FRANCHISEE must provide ATFC with a certificate or other evidence of FRANCHISEE's compliance with the insurance requirements. If FRANCHISEE fails to maintain such insurance, ATFC may procure such insurance on FRANCHISEE's behalf and will be entitled to reimbursement from FRANCHISEE for ATFC's costs to do so, in addition to any other rights and remedies ATFC may have under this Agreement. However, ATFC is not obligated to obtain such insurance on FRANCHISEE's behalf. In any event, FRANCHISEE will be charged a penalty of $500 per month and prohibited from operating the Agency until the required Certificate of Insurance is received by ATFC. Regardless of the amounts set forth above, it will be FRANCHISEE's responsibility to maintain adequate insurance coverage at all times during the term of and after the expiration of this Agreement. FRANCHISEE recognizes that the levels of insurance described
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees must ensure that All Team Franchise Corporation (ATFC) receives thirty (30) days prior written notice of any termination, expiration, or cancellation of their general liability insurance policy. This requirement is in place to protect ATFC, its affiliates, successors, assigns, and any applicable National Accounts by ensuring continuous coverage.
This means that if a franchisee's insurance policy is set to expire, be terminated, or canceled for any reason, the insurance provider must notify ATFC in writing at least 30 days in advance. This allows All Team adequate time to ensure that either the franchisee renews or replaces the policy, or if necessary, ATFC can procure insurance on the franchisee's behalf, although they are not obligated to do so.
Failure to maintain the required insurance and provide the necessary notice can result in penalties for the franchisee. Specifically, All Team may charge a penalty of $500 per month and prohibit the franchisee from operating the agency until the required Certificate of Insurance is received by ATFC. The FDD emphasizes that maintaining adequate insurance coverage is the franchisee's responsibility at all times during the term of the agreement and after its expiration, and the specified insurance levels are merely minimum requirements.