What renewal fee does an All Team franchisee have to pay to ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The term of this Agreement shall be for a period of ten (10) years from the date of execution, unless sooner terminated in accordance with this Agreement. If FRANCHISEE is in full compliance with the terms of this Agreement, FRANCHISEE shall have the right to renew for two additional terms of ten (10) years, provided that FRANCHISEE is not in default under this Agreement at the time of renewal and agrees to execute the most current franchise agreement being utilized by ATFC. The most current franchise agreement may contain significantly different terms than this Agreement. Notwithstanding the foregoing, ATFC may, in its discretion, refuse to renew the Franchise if FRANCHISEE has been notified of defaults (even if subsequently cured) under this Agreement more than three (3) times during the initial term or more than three (3) times during any renewal term, even if FRANCHISEE is not in default at the time of such renewal. FRANCHISEE agrees to give ATFC not less than six (6) or more than eighteen (18) months written notice of an election to renew the franchise, prior to the end of the initial term or the renewal term. Failure to give such notice shall be an election not to renew the franchise. FRANCHISEE shall also pay ATFC a renewal fee of 25% of the then current Franchise Fee, remodel the Agency to current standards and execute a general release, to the extent permitted by applicable law, of any and all claims against ATFC and its affiliates and their respective shareholders, officers, directors, employees, agents, successors and assigns arising under or from this Agreement and any related agreement between the parties or under any applicable law, rule or regulation.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise agreement for two additional terms of ten years each, provided they are in full compliance with the agreement and not in default at the time of renewal. To renew the All Team franchise, the franchisee must execute the most current franchise agreement used by ATFC, which may contain significantly different terms than the original agreement.
To renew their All Team franchise agreement, the franchisee must provide written notice to ATFC not less than six months, and not more than eighteen months, before the end of the current term. Failure to provide this notice constitutes an election not to renew the franchise.
In addition to providing timely notice and being in compliance with the franchise agreement, the All Team franchisee must pay ATFC a renewal fee equal to 25% of the then-current Franchise Fee. The franchisee is also required to remodel the agency to meet the current standards and execute a general release of any and all claims against ATFC and its affiliates, to the extent permitted by applicable law.