Does ATFC warrant that the All Team software is error-free?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
e for FRANCHISEE the right to continue to use the Software as contemplated hereunder, or (B) replace the Software or modify it such that there is no infringement of the third party's rights; and such action by ATFC shall be FRANCHISEE's sole and exclusive remedy against ATFC in such event.
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- ATFC does not represent or warrant to FRANCHISEE and ATFC expressly disclaims any warranty that the Software is error-free or that the operation and use of the Software by FRANCHISEE will be uninterrupted or error-free. ATFC shall have no obligation or liability for any expense or loss incurred by FRANCHISEE arising from FRANCHISEE's use of the Software.
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Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team does not warrant that the software provided to franchisees is error-free. The document explicitly states that All Team disclaims any warranty that the software will operate without interruption or errors. This means a franchisee cannot hold All Team liable for any issues, losses, or expenses resulting from software malfunctions or errors.
This disclaimer is a significant consideration for prospective franchisees. Software is crucial for managing the agency, and any disruptions could impact operations and revenue. Franchisees bear the costs of licensing, installing, maintaining, and upgrading the software, further increasing the financial burden associated with potential software issues. The franchisee is also responsible for promptly reporting any suggestions for software modification to All Team, who has the right to use these suggestions without any obligation to the franchisee.
Furthermore, All Team retains the right to modify or change the software at any time, potentially requiring franchisees to adapt to new systems at their own expense. While All Team will provide suggestions for the layout and design of the agency upon request, the franchisee must still seek written consent from All Team for the planned location, layout, furnishings, and decorations of the office. This level of control over the software and agency design highlights the importance of understanding the technology and operational requirements before investing in an All Team franchise.
In the event of a third-party claim of patent or copyright infringement related to the software, All Team has the option to either secure the franchisee's right to continue using the software or replace/modify it to avoid infringement. This action is the franchisee's sole remedy against All Team in such a situation. The FDD also states that All Team has unlimited rights to remotely access the software and use the information contained within for any purpose they deem appropriate, including sharing it with creditors and potential franchisees, in accordance with applicable laws.