Does All Team acknowledge that a franchisee may sustain losses as a result of operating or closing the business?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. FRANCHISEE HAS BEEN ADVISED TO MAKE AN INDEPENDENT INVESTIGATION OF ATFC'S OPERATIONS. ATFC HAS NOT AND DOES NOT REPRESENT THAT FRANCHISEE CAN EXPECT TO ATTAIN A SPECIFIC LEVEL OF SALES, PROFITS, OR EARNINGS. FRANCHISEE HAS BEEN ADVISED TO OBTAIN INDEPENDENT PROFESSIONAL ADVICE REGARDING THIS FRANCHISE. FRANCHISEE UNDERSTANDS THAT IT MAY SUSTAIN LOSSES AS A RESULT OF THE OPERATION OR THE CLOSING OF THE BUSINESS. FRANCHISEE UNDERSTANDS THAT THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT INVOLVES A HIGH DEGREE OF FINANCIAL RISK AND DEPENDS TO A LARGE DEGREE ON FRANCHISEE'S SKILLS, ABILITIES, INITIATIVE, AND HARD WORK.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team acknowledges that a franchisee may sustain losses as a result of operating or closing their business. The FDD emphasizes that franchisees have been advised to conduct their own independent investigation of All Team's operations and to seek independent professional advice regarding the franchise.
All Team explicitly states that it does not guarantee any specific level of sales, profits, or earnings for franchisees. This acknowledgment serves as a reminder to potential franchisees that the business venture involves financial risk. The success of the All Team franchise depends heavily on the franchisee's skills, abilities, initiative, and hard work.
This disclosure is a standard practice in franchising, intended to ensure that franchisees understand the risks involved and do not rely solely on the franchisor's projections. Prospective All Team franchisees should carefully consider this statement and conduct thorough due diligence before investing in the franchise.