What are the potential consequences for an All Team user who breaches the Processing Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
p of property or the conduct of its business requires such qualification, except where the failure to be so qualified could not reasonably be expected to have a material adverse effect on USER's business or assets, and (c)USER operates its Business in material compliance with all applicable local, state and federal laws, including without limitation the Fair Labor Standards Act and all applicable tax withholding laws and regulations.
V. Termination.
- A. Default by USER. In the event of a breach of any of the terms of this Processing Agreement by USER, if the breach is not cured within ten (10) days of written notice to USER specifying the nature of such breach, ATFC may, in addition to pursuing any other remedies it may have, at its election, suspend its performance hereunder until the breach is cured or terminate this Processing Agreement. The occurrence of the same or a similar breach by USER, even if subsequently cured, twice within any twelve (12) month period shall give ATFC the right to terminate this Processing Agreement immediately upon giving written notice to USER specifying the nature of such breach, without any opportunity to cure.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a USER breaches any terms of the Processing Agreement, All Team Franchise Corporation (ATFC) can take certain actions. If the breach isn't resolved within ten days after written notice, ATFC has the option to suspend its performance under the agreement until the breach is corrected or to terminate the Processing Agreement altogether.
Furthermore, if the same or a similar breach occurs twice within a twelve-month period, even if the first breach was previously resolved, ATFC has the right to terminate the Processing Agreement immediately by providing written notice, without offering an opportunity to cure the second breach. Additionally, upon the termination or expiration of the Franchise Agreement for any reason, ATFC can immediately terminate the Processing Agreement with written notice to the USER.
Upon termination or expiration of the Processing Agreement, ATFC will require the USER to discontinue using the software on ATFC's servers. This could significantly impact the franchisee's ability to manage billing and payroll, as the Processing Agreement is designed to provide these services. Therefore, it is crucial for prospective All Team franchisees to fully understand the terms of the Processing Agreement and ensure compliance to avoid potential disruptions to their business operations.