Who bears the expense of resolving customer complaints when All Team intervenes?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
If FRANCHISEE receives a complaint from a customer which cannot be resolved within five (5) business days, FRANCHISEE shall promptly notify ATFC.
FRANCHISEE agrees that ATFC shall have the right to intervene in and resolve any such unresolved customer complaints, and FRANCHISEE agrees to be bound by any decision made by ATFC regarding a resolution of any such complaints, at the sole expense of FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses incurred when All Team intervenes to resolve customer complaints. Specifically, if a franchisee receives a complaint that cannot be resolved within five business days, they must notify All Team, who then has the right to step in and resolve the issue.
This means that if All Team decides to take over a customer complaint, the franchisee will have to bear the costs associated with the resolution, regardless of the outcome. This could include various expenses depending on the nature of the complaint and the steps All Team takes to resolve it.
This arrangement places a financial risk on the franchisee, as they may have to pay for complaint resolutions even if they believe they are not at fault. It also highlights the importance of franchisees resolving complaints quickly and effectively on their own to avoid intervention by All Team and the associated costs.