Under what conditions can an All Team franchisor terminate the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
the agreements attached to this franchise disclosure document.**
| PROVISION | OTHER AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the franchise term | Section IV of the Franchise Agreement; Section III of the Funding Agreement; and Section III of the Processing Agreement | 10 years from signing the Franchise Agreement. Funding Agreement and Processing Agreement are 3 years from execution. |
| b. Renewal or extension | Section IV of the Franchise Agreement; Section III of the Funding Agreement; Section III of the Processing Agreement | 2 additional terms for 10 years each for the Franchise Agreement. Funding Agreement and Processing Agreement automatically renew for additional 1 year terms. |
| 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. |
| d. Termination by franchisee | Section XII.B of the Franchise Agreement; Section X.B of the Funding Agreement; and Section V.B of the Processing Agreement; | If we breach agreement and do not cure or attempt to cure after notice. |
| e. Termination by franchisor without cause | Section III of the Funding Agreement | If the third-party funding agreement to which we are a party terminates or expires. |
| f. Termination by franchisor with cause | Sections VII.A, VIII.A and XII.A. of the Franchise Agreement; Section X. A. of the Funding Agreement and Section; and Section V.A. of the Processing Agreement | If you do not satisfactorily complete training, do not open within 4 months, do not open additional offices in timely fashion or generally if you breach agreement. Generally, if you breach any agreement you have with us or have the same or similar breach twice within a 12 month period. |
| g. "Cause" defined- curable defaults | Sections XII.A.1 and XII.A.2 of the Franchise Agreement | You have 10 days to cure monetary defaults and 30 days to cure all others except those listed in Sect. XII.A 3. |
| h. |
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 franchisor can terminate the Funding Agreement under specific circumstances. The Funding Agreement has a term of 3 years from execution and automatically renews for additional 1-year terms.
All Team can terminate the Funding Agreement without cause if the third-party funding agreement to which All Team is a party terminates or expires. Additionally, All Team can terminate the Funding Agreement with cause if the franchisee breaches the agreement.
If All Team terminates the Funding Agreement, the franchisee must complete de-identification, pay all amounts due, return materials and manuals, and direct the transfer of the phone number. The franchisee must also pay all Temporary Employment Gross Billings remaining unpaid and stop using the software, turning over all customers, candidates, and related information to All Team upon request.