Does the All Team franchise agreement consider ATFC's consent a representation or warranty?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE acknowledges that, except as otherwise specifically stated herein, ATFC has the absolute right to exercise its own judgment on various matters about this Agreement and the Manual, and has the absolute right to approve, disapprove, give its consent and refuse to consent to FRANCHISEE's requests in its sole and absolute discretion.
FRANCHISEE agrees 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.
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 All Team's consent or refusal to consent does not constitute a representation or warranty. Specifically, the agreement states that any action, refusal to act, approval, disapproval, consent, or refusal of consent by All Team is not considered a representation, warranty, certification, or guarantee by All Team regarding the matter in question or its appropriateness, legality, profitability, or potential success. This means that a franchisee cannot interpret All Team's decisions as an endorsement or assurance of any particular outcome.
This provision protects All Team from liability if a franchisee relies on All Team's consent or approval and the venture subsequently fails. It clarifies that franchisees are responsible for their own due diligence and business decisions, and they cannot hold All Team accountable for the results of those decisions based solely on All Team's prior consent or approval. The franchisee bears the ultimate responsibility for assessing the appropriateness, legality, and profitability of their business operations.
For a prospective All Team franchisee, this clause underscores the importance of independent evaluation and judgment. Franchisees should not assume that All Team's consent to a particular action or request guarantees success or compliance. Instead, franchisees should conduct their own thorough investigations and seek professional advice to ensure they fully understand the risks and potential outcomes associated with their business decisions. This includes seeking legal and financial counsel to assess the implications of the franchise agreement and the viability of their business venture.