Does All Team consider routine litigation incidental to the business as a disclosable pending action?

According to All Team's 2025 Franchise Disclosure Document, the company does not consider routine litigation incidental to the business as a disclosable pending action. All Team is not required to disclose pending actions that qualify as "routine litigation incidental to the business" unless they are significant in the context of the number of franchisees, the size, nature, or financial condition of the franchise system or its business operations.

This means that All Team only needs to disclose pending legal actions if they are substantial and could materially impact the franchise system. Routine, smaller lawsuits or claims that are a normal part of doing business do not need to be individually listed in Item 3 of the FDD. However, if the accumulation of these routine litigations becomes significant, it could trigger a disclosure requirement.

For a prospective franchisee, this is important because it provides some assurance that the FDD is not cluttered with minor legal issues. However, it also means that a franchisee needs to consider the possibility that there may be some level of undisclosed "routine litigation" that could potentially escalate or collectively become significant. It would be prudent for a prospective franchisee to inquire about the nature and volume of litigation All Team considers routine to better assess potential risks.