What section of the All Team Franchise Agreement defines non-curable defaults?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
Based on the 2025 All Team Franchise Disclosure Document, Section XII of the Franchise Agreement, titled "DEFAULT AND TERMINATION," outlines the conditions under which All Team can terminate the agreement for "good cause." This section specifies that termination can occur if the franchisee fails to substantially perform the terms, conditions, and obligations of the agreement, or the mandatory requirements outlined in the Confidential Operations Manual.
While the excerpt mentions termination for "good cause" and provides an example of what constitutes good cause, it does not explicitly define what constitutes a non-curable default. The document specifies that All Team may terminate the agreement if the franchisee does not substantially perform all terms, conditions, and obligations. However, it also states that in some cases, the franchisee has 30 days to cure the default.
Prospective All Team franchisees should carefully review Section XII of the Franchise Agreement to understand the specific events that could lead to termination. It is important to clarify with All Team what constitutes a non-curable default and what opportunities, if any, a franchisee has to remedy a breach of contract. Understanding these terms is crucial for assessing the risks and obligations associated with the franchise agreement.