What costs are included in the costs of enforcing the security interest for an All Team franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
If ATFC or any of the Affiliates are required to enforce this Guaranty and Assumption of Obligations in any judicial proceeding or appeal thereof, the GUARANTORS shall reimburse ATFC and Affiliates for its costs and expenses, including, but not limited to, reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any written demand, claim, action, hearing or proceeding to enforce this Guaranty.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if All Team or its affiliates must enforce the Guaranty and Assumption of Obligations in court, the guarantors must reimburse All Team for costs and expenses. These costs include reasonable fees for accountants, attorneys, attorney assistants, and expert witnesses.
Additionally, the reimbursement covers costs of investigation, proof of facts, court costs, other litigation expenses, and travel and living expenses. These expenses are covered whether they occur before, during, or in anticipation of filing any written demand, claim, action, hearing, or proceeding to enforce the Guaranty.
This means that if All Team has to take legal action to enforce the obligations guaranteed by the franchisee or related parties, the franchisee may be responsible for covering a wide range of legal and associated costs incurred by All Team. This could potentially include significant financial burdens beyond the initial franchise investment.