Does All Team provide a cure period if a franchisee is in breach of the agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Makes an assignment or Transfer in violation of this Agreement; or
- (15) Diverts or collects any fees from customers in violation of Section VII.F, above, which provide that customer billings are to be done by ATFC; or
- (16) Defaults under the terms of the Funding Agreement and/or Processing Agreement.
Subject to applicable law and except as otherwise provided in this Agreement, ATFC will give the FRANCHISEE at least thirty (30) days' prior written notice of termination, [unless a longer period of time is required or shorter period of time is permitted by applicable state law]. The notice shall state the reason(s) for termination and shall provide that the FRANCHISEE has thirty (30) days from the date of said notice to correct any claimed deficiency. If the deficiency is corrected within thirty (30) days, the notice shall be void. If the deficiency is not corrected within said thirty (30) day period, ATFC may terminate this Agreement by giving written notice to FRANCHISEE of said termination.
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- 10 Day Opportunity to Cure. ATFC may also terminate this Agreement for nonpayment of sums due to ATFC or ATFC's affiliates or suppliers; failure of FRANCHISEE to open the Agency for business within four (4) months after ATFC's acceptance of this Agreement or failure of FRANCHISEE to operate both the Permanent Placement Business and Temporary Service Business within four (4) months after FRANCHISEE signed this Agreement. If termination is based on the foregoing, the FRANCHISEE shall be entitled to written notice of default, but ATFC shall [if permitted by applicable law] be required to grant FRANCHISEE only ten (10) days to remedy such default. ATFC has the right to termination this Agreement upon providing FRANCHISEE written notice of said termination.
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- Without Opportunity to Cure. Notwithstanding anything contained herein to the contrary, if state law permits, ATFC shall be permitted to terminate the franchise immediately and without notice when the basis or grounds for cancellation is: (a) conviction of a felony or any other criminal misconduct which, in ATFC's opinion materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which, in ATFC's opinion, materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the termination of any other agreement between FRANCHISEE and ATFC or its affiliates;
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company provides a cure period for certain breaches of the franchise agreement. For most defaults, All Team will provide the franchisee with at least 30 days' prior written notice of termination, unless a longer or shorter period is required or permitted by applicable state law. The notice will state the reasons for termination and provide 30 days to correct the deficiency. If the franchisee corrects the deficiency within this period, the notice is voided; otherwise, All Team may terminate the agreement with written notice.
However, All Team may terminate the franchise agreement immediately without notice or an opportunity to cure under specific circumstances, if state law permits. These circumstances include conviction of a felony or any other criminal misconduct that materially and adversely affects the franchise, fraudulent activity that similarly affects the franchise, abandonment of the franchise, bankruptcy or insolvency of the franchisee, termination of any other agreement between the franchisee and All Team or its affiliates, repeated failure or refusal to comply with the agreement (three or more times in a 12-month period), or any other act or omission that permits termination without notice under applicable state law.
All Team may also terminate the agreement if the franchisee fails to make payments, fails to open the agency for business within four months after acceptance of the agreement, or fails to operate both the Permanent Placement Business and Temporary Service Business within four months after signing the agreement. In these cases, All Team is required to grant the franchisee only ten (10) days to remedy the default, if permitted by applicable law. A prospective franchisee should consult with a legal professional to understand how local and state laws may impact the cure periods outlined in the franchise agreement.