Does All Team's right to terminate for good cause affect any other rights or remedies available to them?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
structure of ATFC, the resulting entity shall step into the place of ATFC, without any additional consent of or notice to the FRANCHISEE, as if the term ATFC were defined in this Agreement to include such entity.
XII. DEFAULT AND TERMINATION
A. Termination By ATFC.
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- 30 Day Opportunity to Cure. ATFC may at its option, and without prejudice to any other rights or remedies provided for in this Agreement or at law or in equity, terminate this Agreement for "good cause". Without limitation as to other situations, good cause for termination also exists if FRANCHISEE or any guarantor of this Agreement:
- (1) Does not substantially perform any and all of the lawful terms, conditions, and obligations of this Agreement, or the mandatory requirements under the Confidential Operations Manual; or
- (2) Loses possession of the premises at which the Agency is located and fails to secure a suitable site for relocation which ATFC consents to within three (3) months thereafter; or defaults under the terms of its lease for the premises; or
- (3) Misrepresents any of the billings upon which the Fees are calculated that FRANCHISEE is required to report to ATFC; or
- (4) Loses any permit or license which is a prerequisite to the operation of the Agency for a period of five (5) days;
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team's right to terminate the franchise agreement for good cause does not prevent them from pursuing other available rights or remedies. Specifically, All Team retains the right to seek legal remedies, ensuring that termination for good cause does not limit their ability to enforce the agreement or protect their interests through other legal means. This is a common practice in franchising, allowing franchisors to have multiple avenues for addressing franchisee breaches.
All Team is entitled to injunctive relief and orders of specific performance to enforce the provisions of the agreement if a franchisee breaches or is expected to breach the agreement. This means All Team can ask a court to order the franchisee to stop certain actions or to fulfill their obligations under the agreement. The FDD also states that no right or remedy conferred upon either party is intended to be exclusive, and every such right or remedy shall be cumulative and in addition to any other rights or remedies available under this Agreement, or otherwise.
Furthermore, if either All Team or the franchisee incurs attorney's fees or other expenses while seeking to enforce the agreement, the court has the right to award the prevailing party reasonable expenses, including attorney's fees, costs, and other expenses. This provision encourages both parties to adhere to the agreement, knowing that failure to do so could result in financial responsibility for legal costs. This is a standard clause in franchise agreements to ensure that both parties can seek legal recourse without undue financial burden.