Does the All Team franchise agreement consider ATFC's refusal to act 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 explicitly states that All Team Franchise Corporation's (ATFC) 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. This applies to anything acted upon, refused consent, or any related appropriateness, legality, profitability, or success. This means that franchisees cannot interpret any action or inaction by All Team as an assurance of compliance, meeting legal standards, or guaranteeing any level of success.
This provision protects All Team from liability if a franchisee's business does not perform as expected or fails to comply with local regulations, even if All Team was involved in some decision-making capacity. The franchisee is responsible for ensuring their agency complies with all applicable laws and regulations.
For a prospective All Team franchisee, this underscores the importance of conducting thorough due diligence and not relying solely on All Team's actions or approvals as a guarantee of success or compliance. It is crucial to seek independent professional advice and understand the risks involved in operating the franchise. This clause emphasizes that the success of the franchise largely depends on the franchisee's own skills, abilities, and hard work, as also highlighted in the caveat section of the franchise agreement.