Under what circumstances can All Team Funding Company (ATFC) immediately terminate the Funding Agreement upon written notice to the user?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The occurrence of the same or a similar breach by USER, even if subsequently cured, twice within any twelve (12) month period shall give ATFC the right to terminate this Agreement immediately upon giving written notice to USER specifying the nature of such breach, without any opportunity to cure.
Upon the termination or expiration of the Franchise Agreement or the termination of the Processing Agreement, for any reason, ATFC shall have the right to terminate this Agreement immediately upon written notice to USER.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the All Team Funding Company (ATFC) has the right to terminate the Funding Agreement immediately under specific circumstances. ATFC can terminate the agreement if the franchisee (USER) commits the same or a similar breach twice within a 12-month period, even if the breach was initially cured. In this case, ATFC must provide written notice specifying the nature of the breach, and the franchisee does not have an opportunity to cure the second breach.
Additionally, ATFC can immediately terminate the Funding Agreement upon the expiration or termination of either the Franchise Agreement or the Processing Agreement. This termination is also enacted through written notice to the franchisee.
These termination clauses highlight the importance of adhering to the terms of all related agreements (Franchise, Processing, and Funding) and avoiding repeat breaches. For a prospective All Team franchisee, this means maintaining strict compliance to avoid potential disruptions to funding and business operations. The franchisee should seek clarification from All Team regarding what constitutes a 'similar breach' to fully understand the scope of this clause.