What is the amount of the Dispute Resolution Fee that an All Team user must pay?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
full force and effect subsequent to and notwithstanding the Transfer, or the termination or expiration of the term of this Agreement. The arbitration will be conducted on an individual, not a class-wide basis. None of the parties to the arbitration will be entitled to consolidation of the arbitration proceedings with the proceedings of any third party, nor will the arbitrator or any court be empowered to order a consolidation of proceedings with any third party.
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- Dispute Resolution Fee. In the event that the USER or its guarantors have not complied with the provisions in this Section on Dispute Resolution, USER shall reimburse ATFC for all of its expenses incurred in curing the USER's breach (including, without limitation, ATFC's attorneys' fees and costs related to dismissing and responding to any improperly filed claim) and pay the ATFC a Dispute Resolution Fee of $50,000 ("Dispute Resolution Fee"). USER acknowledges and agrees that the ATFC will be damaged by such breach. USER agrees that a
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a User who does not comply with the dispute resolution provisions must reimburse All Team Franchise Corporation (ATFC) for all expenses incurred in curing the breach. In addition to covering ATFC's expenses, the user must also pay a Dispute Resolution Fee of $50,000.
All Team emphasizes that ATFC will be damaged by a breach of the dispute resolution provisions. Because the full extent of damages is difficult to calculate precisely, All Team and the user agree that the $50,000 Dispute Resolution Fee is a reasonable estimate of damages and not a penalty.
All Team retains the right to collect this $50,000 Dispute Resolution Fee, along with any other rights All Team has for non-compliance under the agreement. This fee serves as a significant financial disincentive for franchisees to violate the dispute resolution terms outlined in their agreement.