factual

If All County provides defective or non-conforming services, what is All County's obligation?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

LCS will provide services that will be performed at or above industry standards. If for some reason the provided services are defective or non-conforming, LCS agrees to re-perform the work for a time period indicated.

Liability Limit

LCS liability is limited to the maximum amount it receives under the agreement for both direct and indirect damages.

Relationship

The relationship between LCS and the CUSTOMER is not a partnership, joint venture or employer-employee.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to All County's 2025 Franchise Disclosure Document, if the services provided by LCS (likely referring to a service provider or subsidiary of All County) are defective or non-conforming, LCS will re-perform the work for a time period indicated. However, LCS's liability is limited to the maximum amount it receives under the agreement for both direct and indirect damages. This means that All County's financial responsibility for errors or omissions is capped at the revenue it earned from the specific service agreement, which may not cover all losses a franchisee incurs as a result of the defective service.

This limitation of liability is a significant factor for prospective All County franchisees to consider. While All County commits to re-performing substandard work, the financial compensation available for any resulting damages is restricted. This could leave franchisees bearing uncovered losses if the damages exceed the fees paid under the agreement.

Franchisees should carefully evaluate the types of services All County provides and the potential financial risks associated with service failures. It would be prudent to discuss with All County what "industry standards" are used to evaluate the services provided and what the "time period indicated" is for re-performing the work. Understanding these details will help a franchisee assess the potential exposure and whether additional insurance or other risk mitigation strategies are necessary. It is also important to note that the relationship between LCS and the customer is not a partnership, joint venture, or employer-employee relationship.

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.