factual

Does the All County Franchise Agreement allow for reservation of claims against non-settling parties?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Reservation of Claims Against Non-Settling Parties. All County and Franchisee expressly reserve their right and claims against any non-settling persons, firms, corporations, or other entities for whatever portion or percentage their damages are found to be attributable to the wrongful conduct of said non-settling parties.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to All County's 2025 Franchise Disclosure Document, both All County and the franchisee expressly reserve their rights and claims against non-settling parties. This means that if damages are attributable to the wrongful conduct of individuals or entities not involved in the settlement, both All County and the franchisee retain the right to pursue claims against those non-settling parties. This reservation applies to any persons, firms, corporations, or other entities.

For a prospective All County franchisee, this clause is beneficial as it ensures that they are not prevented from seeking compensation from other parties who may be responsible for damages, even if the franchisee settles a claim with All County. This could be relevant in situations where a third party's actions impact the franchise's operations or profitability.

This type of clause is fairly standard in franchise agreements, as it protects the rights of both parties to seek recourse from outside entities that may cause harm. It is important for a franchisee to understand the implications of this clause, particularly in the context of potential disputes or liabilities involving third parties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.