Under what conditions can the All Team agreement be terminated sooner than the initial term?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
one-half percent (1-1/2%) per month or the maximum legal rate in the jurisdiction where the Agency is located. User acknowledges that this paragraph does not constitute ATFC's agreement to accept payments after same are due or a commitment by ATFC to extend credit to, or otherwise finance User's operation of the Agency. Further, User acknowledges that User's failure to pay all amounts when due constitutes grounds for termination of this Agreement.
III. Term. This Agreement shall commence upon execution of this Agreement and shall continue for a term of three (3) years, unless terminated sooner in accordance with the terms of this Agreement, and shall automatically be renewed for successive one (1) year periods thereafter unless ATFC gives USER written notice of termination at least sixty (60) but not more than one hundred twenty (120) days before the end of the then current term. ATFC has the right to terminate this Agreement immediately upon the expiration or termination of the Franchise Agreement or upon the expiration or termination of the Funding Agreement. ATFC shall have the right to increase any and all fees under this Agreement for any renewal period.
IV. Warranties and Representations.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement has an initial term of three years but can be terminated earlier under certain conditions. All Team can terminate the agreement immediately if the franchisee breaches the agreement and fails to cure the breach within ten days of written notice. Additionally, if the franchisee commits the same or a similar breach twice within a twelve-month period, All Team has the right to terminate the agreement immediately without providing an opportunity to cure the breach.
All Team also has the right to terminate the Funding Agreement immediately upon the termination or expiration of the Franchise Agreement or the Processing Agreement, regardless of the reason for their termination. Conversely, the franchisee can terminate the Funding Agreement if All Team breaches the agreement and fails to cure the breach within ten days of written notice.
It is important to note that even if the Funding Agreement is terminated, the franchisee remains obligated to pay all outstanding Accounts Receivable. The franchisee must also discontinue using All Team's software upon termination or expiration of the Funding Agreement, unless the termination results from the franchisee exercising their termination right due to All Team's uncured breach. These termination conditions are typical in franchise agreements to protect the franchisor's interests and ensure compliance with the agreement's terms.