Under what circumstances can All Team terminate the franchise agreement immediately without notice?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained herein to the contrary, if state law permits, ATFC shall be permitted to terminate the franchise immediately and without notice when the basis or grounds for cancellation is: (a) conviction of a felony or any other criminal misconduct which, in ATFC's opinion materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which, in ATFC's opinion, materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the termination of any other agreement between FRANCHISEE and ATFC or its affiliates; (f) repeated failure or refusal to comply with the lawful provisions of this Agreement, (i.e., three (3) or more times in any twelve (12) month period) whether or not such failures or refusals are corrected after notice; or (g) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) can terminate the franchise agreement immediately and without notice under specific conditions, assuming it is permitted by state law. These conditions include conviction of a felony or any criminal misconduct that materially and adversely affects the franchise's operation, maintenance, reputation, or goodwill. Similarly, All Team can immediately terminate the agreement in the event of fraudulent activity that has a material and adverse effect on the franchise.
Further reasons for immediate termination involve more direct operational failures or financial instability. These include abandonment of the franchise, bankruptcy or insolvency of the franchisee, or the termination of any other agreement between the franchisee and All Team or its affiliates. Additionally, All Team can terminate immediately if the franchisee repeatedly fails or refuses to comply with the lawful provisions of the agreement three or more times within a twelve-month period, regardless of whether the issues were corrected after notice.
Finally, All Team reserves the right to immediate termination for any other act or omission that permits such termination without notice and/or an opportunity to cure under applicable state law. This clause provides a broad scope for All Team to act in accordance with state-specific regulations, which may vary significantly. Prospective franchisees should be aware of these conditions, as they represent situations where their franchise can be terminated without prior warning or chance to rectify the issue.