Does All Team consider the franchise agreement to involve a high degree of financial risk?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. FRANCHISEE HAS BEEN ADVISED TO MAKE AN INDEPENDENT INVESTIGATION OF ATFC'S OPERATIONS. ATFC HAS NOT AND DOES NOT REPRESENT THAT FRANCHISEE CAN EXPECT TO ATTAIN A SPECIFIC LEVEL OF SALES, PROFITS, OR EARNINGS. FRANCHISEE HAS BEEN ADVISED TO OBTAIN INDEPENDENT PROFESSIONAL ADVICE REGARDING THIS FRANCHISE. FRANCHISEE UNDERSTANDS THAT IT MAY SUSTAIN LOSSES AS A RESULT OF THE OPERATION OR THE CLOSING OF THE BUSINESS. FRANCHISEE UNDERSTANDS THAT THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT INVOLVES A HIGH DEGREE OF FINANCIAL RISK AND DEPENDS TO A LARGE DEGREE ON FRANCHISEE'S SKILLS, ABILITIES, INITIATIVE, AND HARD WORK.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company advises potential franchisees that the business venture involves a high degree of financial risk. All Team states that franchisees may sustain losses from operating or closing the business. The success of an All Team franchise depends largely on the franchisee's skills, abilities, initiative, and hard work. All Team does not guarantee any specific level of sales, profits, or earnings.
This acknowledgement of financial risk is a standard disclosure in franchise agreements. It underscores the importance of conducting thorough due diligence before investing in an All Team franchise. Prospective franchisees should carefully review the FDD, seek professional advice, and assess their own capabilities and resources to determine if they are prepared to take on the risks associated with the business.
All Team also advises franchisees to make an independent investigation of All Team's operations and to obtain independent professional advice regarding the franchise. This suggests that All Team encourages potential franchisees to seek external expertise to evaluate the opportunity and associated risks. Franchisees must also understand and comply with all applicable laws relating to the licensing and operation of an employment agency and placement firm, as well as requirements relating to the employment of union members in the area.