How are disputes settled between All Team and its franchisees regarding the Funding Agreement?

According to All Team's 2025 Franchise Disclosure Document, disputes related to the Funding Agreement are settled through mediation. If mediation is unsuccessful, the prevailing party in any subsequent legal action is entitled to collect reasonable attorney's fees.

This means that if an All Team franchisee has a disagreement with All Team over the Funding Agreement (Exhibit C), the first step is to attempt to resolve the issue through mediation, a process where a neutral third party helps facilitate a settlement. This is a common practice in franchising, as it offers a less adversarial and more cost-effective way to resolve disputes compared to litigation.

However, if mediation fails to produce a resolution, either party can pursue legal action. The FDD specifies that the party who wins the lawsuit is entitled to recover their reasonable attorney's fees from the losing party. This provision can be a significant factor in deciding whether to pursue legal action, as it provides an incentive to settle disputes amicably and discourages frivolous lawsuits. Franchisees should carefully consider this clause and consult with an attorney to understand their rights and obligations under the Funding Agreement.