factual

Besides the disclosed litigation, does All Team have any other litigation required to be disclosed in Item 3?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

Other than disclosed above, no litigation is required to be disclosed in this Item.

Source: Item 3 — LITIGATION (FDD pages 9–10)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, Item 3 regarding litigation discloses one previous case. A Plus Staffing Solutions, LLC, a former franchisee, initiated a case against All Team Franchise Corp. in the American Arbitration Association on June 16, 2016, alleging breaches of the Franchise Agreement, Software Agreement, and Funding Agreement, as well as conversion of funds and customer information. A Plus sought a declaratory judgment, injunctive relief, an accounting of collections, and damages up to $75,000. All Team counterclaimed, alleging breach of contract and tortious interference, seeking damages up to $50,000 and termination of the agreements. The case was settled amicably on February 8, 2017, with both parties releasing each other from all claims.

Beyond this specific case, the disclosure explicitly states that no other litigation is required to be disclosed in Item 3. This statement provides assurance that All Team is not involved in any other legal disputes that meet the criteria for disclosure under Item 3 of the FDD, which typically includes significant pending or past litigation involving the franchisor, its predecessors, and certain related parties.

For a prospective franchisee, this information is crucial in assessing the legal standing and potential risks associated with investing in an All Team franchise. While the disclosed litigation was resolved through a confidential settlement, it is important to understand the nature of the dispute and its potential implications. The assurance that no other litigation requires disclosure in Item 3 offers some comfort, but further due diligence, including consulting with a legal professional, is always advisable to fully evaluate the risks and opportunities associated with the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.