In what court must controversies, disputes, or claims between All Team and the USER be filed?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
marks, patents, or copyrights,; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.
- Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between ATFC and USER arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in Tampa, FL when the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims ATFC has relating to its trademarks, service marks, patents, or copyrights; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties shall be brought in either federal or state courts in Tampa, FL. Both parties agree to submit to the jurisdiction of the state and federal court in Tampa, FL.
- Arbitration. In the event that the federal court described above does not have subject matter jurisdiction over the dispute, the parties, subject to all other provisions above, will submit the dispute to binding arbitration conducted in Tampa, FL (unless the parties mutually agree otherwise). The arbitration proceeding will be conducted in accordance with the then current commercial arbitration rules of the American Arbitration Association ("AAA Rules"), except to the extent the AAA Rules differ from the terms of this Agreement, in which event the terms of this Agreement will apply. Notwithstanding the foregoing, the arbitration does not have to be conducted under the AAA. The arbitrator must be mutually selected by the parties and must have at least 5 years of substantial experience in franchise law.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, disputes between All Team Franchise Corporation (ATFC) and the USER (franchisee) arising from the franchise agreement must initially be filed in the Federal District Court in Tampa, FL, provided the grounds for federal jurisdiction under 28 U.S.C. § 1332 are met. Both parties consent to the jurisdiction of this court and waive any objections to jurisdiction or venue.
However, if the Federal District Court in Tampa lacks jurisdiction, the dispute will be subject to binding arbitration, also conducted in Tampa, FL, unless both parties agree to an alternative location. This arbitration will follow the American Arbitration Association (AAA) rules, except where those rules conflict with the franchise agreement, in which case the agreement prevails. The arbitrator must be mutually selected and have at least five years of experience in franchise law.
Notably, claims by All Team relating to its trademarks, service marks, patents, copyrights, or any lease or sublease between the parties, as well as requests for injunctive relief, can be brought in either federal or state courts in Tampa, FL, regardless of the above stipulations. This means All Team has the option to pursue these specific types of claims in either federal or state court within Tampa.
Prior to initiating any litigation or arbitration, both parties are required to participate in non-binding mediation in Tampa, Florida, in an attempt to resolve the dispute. The USER bears the cost of this mediation. Failure to engage in mediation before starting legal proceedings can result in dismissal of the case. These dispute resolution procedures are designed to manage and contain legal conflicts within a specific jurisdiction and through defined processes.