Does the All Team franchise agreement consider ATFC's approval a representation or warranty?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
that ATFC's action, refusal to act, approval, disapproval, consent, or refusal of consent is not, and shall not be deemed, a representation, warranty, certification or guarantee by ATFC about that which is acted upon or refused consent, or about any appropriateness, legality, profitability, or success related thereto. No ATFC action, refusal to act, approval, disapproval, consent or refusal to consent is, or shall be deemed, a guarantee, warranty, or representation that the Agency complies with, or meets any local, municipal, state, federal, or other laws or regulations relating to the offer of services or otherwise. If it is found that ATFC wrongfully withheld any consent pursuant to this Agreement, FRANCHISEE's sole remedy for such failure shall be to require ATFC to grant such consent.
- M. Receipt of Franchise Disclosure Document.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 All Team Franchise Disclosure Document, the franchise agreement specifies that any action, refusal to act, approval, disapproval, consent, or refusal of consent by ATFC (All Team Franchise Corporation) does not constitute a guarantee, warranty, or representation regarding the compliance of the agency with any laws or regulations. This includes local, municipal, state, federal, or other laws related to the services offered.
This means that if All Team approves something related to the franchisee's agency, such as a location or a business practice, it does not guarantee that the agency is compliant with all applicable laws. The franchisee remains responsible for ensuring their agency's compliance with all legal and regulatory requirements.
Furthermore, the All Team franchise agreement states that even if ATFC wrongfully withholds consent, the franchisee's sole remedy is to require All Team to grant such consent. This limitation on remedies highlights the importance of franchisees conducting their own due diligence and not relying solely on All Team's approvals or actions as a guarantee of legality, profitability, or success. Franchisees bear the ultimate responsibility for the appropriateness, legality, profitability, and success of their All Team franchise.