Does the All Team franchise agreement consider ATFC's disapproval 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 actions, including disapproval or refusal to act, should not be considered a representation, warranty, certification, or guarantee. This applies to anything related to the action or refusal, including its appropriateness, legality, profitability, or potential success.
This means that as a franchisee, you cannot hold All Team liable for any perceived guarantees or assurances based on their approvals or disapprovals related to your business operations. All Team retains the right to exercise its judgment and discretion in various matters, and franchisees acknowledge this right.
This clause protects All Team from potential legal claims arising from franchisees who might interpret approvals or disapprovals as promises of success or legality. It emphasizes that the franchisee is responsible for their business's performance and compliance, and cannot rely on All Team's decisions as a guarantee of any kind. Franchisees should be aware of this when making business decisions and understand that All Team's actions are not a substitute for their own due diligence and professional advice.