What is the penalty for the second 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, franchisees face financial penalties for violating the requirements for servicing National/Regional Accounts. These requirements include maintaining required insurance, adhering to the terms of agreements between All Team Franchise Corporation (ATFC) and the National/Regional Account customer, complying with audits, and signing required documents.
For the first violation of these National/Regional Account requirements, All Team franchisees will be assessed damages of $1,000. The penalty increases to $2,500 for the second violation. A third violation results in damages of $5,000, and after the third violation, the franchisee may lose the privilege of servicing National/Regional Accounts altogether.
All Team retains the right to collect these amounts in addition to any other remedies available for non-compliance. The FDD states that these damages are considered liquidated damages, not a penalty, because precisely calculating the full extent of damages from improper servicing is difficult, and both parties desire certainty in this matter.