What is the penalty for the third 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 National/Regional Account requirements. These requirements ensure uniformity and quality of service across the All Team system. The penalties escalate with each subsequent violation.
Specifically, the third violation of these requirements results in a $5,000 penalty. After this third violation, the franchisee may also lose the privilege of servicing National/Regional Accounts altogether. This can significantly impact a franchisee's revenue potential, as these accounts often represent substantial business opportunities.
All Team retains the right to collect these damages, in addition to any other legal remedies available for non-compliance. The FDD states that these damages are considered liquidated damages, not a penalty, reflecting an agreement between All Team and the franchisee on a reasonable estimate of potential losses resulting from improper servicing of these key accounts. Prospective franchisees should carefully review the National/Regional Account requirements in the manual to avoid these costly penalties and ensure they can continue to serve these important clients.