What recourse does an All Team franchisee have if All Team materially defaults on the franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Termination By FRANCHISEE.
FRANCHISEE may terminate this Agreement if ATFC shall materially default in performance of any terms and conditions in this Agreement, after giving ATFC written notice within thirty (30) days thereof, and if the default has not been corrected within thirty (30) days after such notice, or if such default is incapable of being cured within thirty (30) days, such longer period of time as is necessary to cure such default, provided that ATFC has commenced curing such default within said thirty (30) day period and diligently pursues a cure.
- C.
Consequences of Termination.
Upon termination or expiration of this Agreement, for any reason whatsoever, all of FRANCHISEE's rights hereunder shall terminate.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee can terminate the franchise agreement if All Team materially defaults on its obligations. The franchisee must provide All Team with written notice of the default within thirty days of its occurrence. All Team then has thirty days to correct the default.
If the default cannot be cured within thirty days, the franchisee must allow All Team a longer period to cure the default, provided that All Team commences curing the default within the initial thirty-day period and diligently pursues a cure. This means All Team must start fixing the problem promptly and continue working on it until it is resolved.
Upon termination of the agreement, all rights of the franchisee are terminated. This highlights the importance of carefully considering the implications and potential consequences of terminating the agreement, as the franchisee will lose all rights associated with the franchise.