Are Affiliates of ATFC also entitled to reimbursement of legal fees from the All Team franchisee?

According to All Team's 2025 Franchise Disclosure Document, franchisees may be required to reimburse both All Team Franchise Corporation (ATFC) and its affiliates for legal fees in certain situations. Specifically, if ATFC or any of its affiliates are involved in legal proceedings to enforce or defend the franchise agreement, the franchisee is obligated to cover their costs and expenses. These costs include reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses, and travel and living expenses. This obligation applies whether these expenses are incurred before, during, or in anticipation of any legal action.

This means that if a franchisee breaches the franchise agreement and All Team or its affiliates take legal action, the franchisee will be responsible for not only their own legal costs but also those incurred by All Team and its affiliates. This can create a significant financial burden for the franchisee, especially if the legal proceedings are extensive or complex. The franchisee's responsibility extends to covering a wide range of expenses, including expert witness fees and travel costs, which can quickly add up.

It is important for prospective All Team franchisees to understand the scope of this obligation and factor it into their financial planning. Franchisees should also be aware that this reimbursement obligation applies to both All Team and its affiliates, meaning that the franchisee could be responsible for legal fees incurred by multiple parties related to the franchisor. This provision is fairly standard in franchise agreements, as it aims to protect the franchisor and its related entities from financial losses resulting from franchisee non-compliance or disputes.