What section of the All Team Franchise Agreement defines curable defaults?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
essors and assigns. In the event of any assignment, sale, merger or change in ownership or 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; or
- (5) Misuses any of the Marks or confidential information, or engages in conduct which reflects unfavorably, in ATFC's opinion upon the operation, maintenance, goodwill and/or reputation of the franchise Systems; or
- (6) Is adjudged bankrupt, becomes insolvent, or makes a general assignment for the benefit of creditors (subject to Section XII.A.3.(d) below); or
- (7) Commits any other act which constitutes good cause under applicable state law or court decisions; or
- (8) Fails to provide ATFC with the timely reports of sales and other statistical and business information as required under this Agreement; or
- (9) Engages in any illegal, fraudulent, unfair or deceptive business practice, which, in ATFC's opinion, adversely affects the operation, maintenance, or goodwill of the franchise; or
- (10) Fails to keep the Agency open for a period of seven (7) consecutive days without justifiable cause; or
- (11) Fails to pay its lawful debts and any and all taxes when same become due; or
- (12) Fails to properly service customers in accordance with ATFC's standards and within the spirit and intent of this Agreement. (By way of illustration and not limitation, a failure to properly service customers, will occur if at least three unresolved customer complaints are made regarding the services rendered by the Agency within any consecutive ninety (90) day period because of dissatisfaction with services provided by the Agency.);
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
According to the 2025 All Team Franchise Disclosure Document, Section XII.A.1 of the Franchise Agreement outlines the conditions under which All Team may terminate the agreement for good cause, while providing the franchisee an opportunity to cure the default. Specifically, if a franchisee fails to substantially perform their obligations under the agreement or the Confidential Operations Manual, All Team may terminate the agreement, provided the franchisee has 30 days to correct the issue.
However, Section XII.A.3 clarifies situations where All Team can terminate the franchise agreement immediately without an opportunity to cure if permitted by state law. These situations include conviction of a felony, fraudulent activity, abandonment of the franchise, bankruptcy or insolvency of the franchisee, termination of another agreement between the franchisee and All Team, repeated failure to comply with the agreement, or any other act that permits termination without notice under applicable state law.
Section XII.B states that the franchisee may terminate the agreement if All Team materially defaults in performance of any terms and conditions in this Agreement, after giving All Team 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 All Team has commenced curing such default within said thirty (30) day period and diligently pursues a cure.