Can the terms and conditions of a renewed All Team franchise agreement differ materially from the previous agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT OR OTHER AGREEMENT | SUMMARY |
|---|---|---|
| c. Requirement for franchisee to renew or extend | Section IV of the Franchise Agreement | Give notice, sign new franchise agreement that may contain terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements and territorial rights, sign a release, and pay fee. |
IV. TERM
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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 28–30)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the terms and conditions of a renewed franchise agreement may differ materially from the previous agreement. Specifically, to renew the franchise agreement, a franchisee must sign a new franchise agreement that may contain terms and conditions materially different from those in the previous agreement, such as different fee requirements and territorial rights.
To renew the All Team franchise agreement, the franchisee must provide notice, sign a new franchise agreement, which as stated previously, may contain materially different terms and conditions, sign a release, and pay a fee. The franchisee must give All Team written notice of an election to renew the franchise not less than six months, and not more than eighteen months prior to the end of the current term. Failure to provide such notice constitutes an election to not renew the franchise agreement.
Additionally, All Team may refuse to renew the franchise if the franchisee has been notified of defaults under the agreement more than three times during the initial term, or more than three times during any renewal term, even if the franchisee is not in default at the time of renewal. The franchisee must also pay All Team a renewal fee of 25% of the then-current franchise fee, remodel the agency to current standards, and execute a general release of any and all claims against All Team.