What is the penalty for the first violation of National/Regional Account requirements by an All Team franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
s required by the National/Regional account customer; and (iv) and sign any document required by the National/Regional account customer. Uniformity and quality of services offered by all ATFC agencies to National/Regional Accounts is of utmost importance to ATFC and the entire System. If FRANCHISEE violates the National/Regional Account requirements described herein and in the Manual, FRANCHISEE agrees that ATFC will be damaged. These damages will be calculated at $1,000 for the first violation, $2,500 for the second violation and $5,000 for the third violation. After the third violation, FRANCHISEE may no longer be permitted to service National/Regional Accounts. ATFC has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under this Agreement. FRANCHISEE agrees that a precise calculation of the ful
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee will be penalized if they violate the requirements for servicing National/Regional Accounts. The document specifies that uniformity and quality of services offered to these accounts are critically important to All Team and the entire franchise system.
For the first violation of the National/Regional Account requirements, All Team will assess damages of $1,000. The penalty increases to $2,500 for the second violation and $5,000 for the third violation.
After a third violation, the All Team franchisee may no longer be permitted to service National/Regional Accounts. All Team retains the right to collect these amounts in addition to any other rights it may have for non-compliance under the Franchise Agreement. The agreement states that these damages are considered liquidated damages and not a penalty, as precisely calculating the full extent of damages from improper servicing is difficult and all parties desire certainty.