Where in the All Team franchise agreement can I find information about dispute resolution?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
nts, officers, directors, parents, subsidiaries, affiliates, successors and assigns ("Indemnitors") pursuant to or in connection with the operation of the Agency regardless of whether the Indemnities were negligent or that said negligence was a contributing factor in the liability (to the extent permitted by law).
XVIII. DISPUTE RESOLUTION
A. Mediation. Before any party may bring an action in court for any controversy, dispute or claim between ATFC and FRANCHISEE arising from this Agreement or the franchise relationship set forth in this Agreement, the parties must first have a conference with each other to try to resolve the dispute. If this fails to bring about a resolution, the dispute will first be submitted to non-binding mediation (the "Mediation") in Tampa, Florida unless the parties mutually agree to another location. The Mediation shall be conducted in accordance with then-current AAA mediation rules (the "AAA Mediation Rules") except to the extent the AAA Mediation Rules differ from the terms of this Agreement, in which event the terms of this Agreement shall be applied. Notwithstanding the foregoing, the mediation does not have to be conducted under the AAA. ATFC and FRANCHISEE will select the mediator. If the parties cannot agree on the selection of a mediator, the mediation shall be conducted through the AAA who will make the selection of mediator using their rules and guidelines. The cost of the Mediation, including the mediator's fee and expenses, shall be paid by the FRANCHISEE. All negotiations and mediation proceedings (including without limitation, discovery conducted therein, as well as all statements and settlement offers made by either party or the mediator in connection with the Mediation) shall be strictly confidential, shall be considered as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence, and shall not be admissible or otherwise used in connection with any court or arbitration proceeding for any purpose. The mediator may not be called as a witness in any court or arbitration proceeding for any purpose. If the parties, after a good faith effort to settle the dispute using Mediation, are unable to reach settlement, ATFC and FRANCHISEE agree that the dispute will be resolved according to the Sections below. Failure to submit the dispute to Mediation prior to commencing any litigation or arbitration proceeding shall be grounds for dismissal of the litigation or arbitration proceedings.
Notwithstanding the foregoing, the obligation of this Section to mediate will not be binding with respect to claims brought by ATFC and relating to ATFC's trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.
B. Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between ATFC and FRANCHISEE arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in Tampa, FL when the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims ATFC has relating to its trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties shall be brought in either federal or state courts in Tampa, FL. Both parties agree to submit to the jurisdiction of the state and federal court in Tampa, FL.
C. Arbitration. In the event that the federal court described above does not have subject matter jurisdiction over the dispute, the parties, subject to all other provisions above, will submit the dispute to binding arbitration conducted in Tampa, FL (unless the parties mutually agree otherwise). The arbitration proceeding will be conducted in accordance with the then current commercial arbitration rules of the American Arbitration Association ("AAA Rules"), except to the extent the AAA Rules differ from the terms of this Agreement, in which event the terms of this Agreement will apply. Notwithstanding the foregoing, the arbitration does not have to be conducted under the AAA. The arbitrator must be mutually selected by the parties and must have at least 5 years of substantial experience in franchise law. Each party will be limited to 25 document requests, 15 interrogatories and 1 deposition unless otherwise agreed to between the parties.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchise agreement outlines dispute resolution procedures in Section XVIII, titled "DISPUTE RESOLUTION." This section mandates that before initiating any court action regarding disputes between All Team Franchise Corporation (ATFC) and the franchisee, both parties must first attempt to resolve the issue through a conference. If this fails, the dispute must be submitted to non-binding mediation in Tampa, Florida, unless both parties agree to an alternative location.
The mediation process will follow the American Arbitration Association (AAA) mediation rules, unless those rules conflict with the franchise agreement, in which case the agreement's terms will prevail. All Team and the franchisee will jointly select a mediator; if they cannot agree, the AAA will appoint one. The franchisee is responsible for covering the costs of the mediation, including the mediator's fees and expenses. All negotiations and mediation proceedings are to remain confidential and are inadmissible in any subsequent court or arbitration proceedings.
If mediation does not result in a settlement, the dispute will be resolved as per the subsequent sections of the agreement. Failure to engage in mediation before starting litigation or arbitration can lead to dismissal of those proceedings. However, the obligation to mediate does not apply to claims brought by All Team relating to trademarks, service marks, patents, or copyrights, claims relating to any lease or sublease of real property between the parties, or requests by All Team for temporary restraining orders, preliminary injunctions, or other proceedings to obtain interim or permanent relief to preserve the status quo or prevent irreparable injury.
In cases where the federal court does not have jurisdiction over the dispute, the parties will submit to binding arbitration in Tampa, FL, following the AAA Rules, unless those rules conflict with the agreement. The arbitrator must have at least 5 years of experience in franchise law and be mutually selected by the parties. Each party is limited to 25 document requests, 15 interrogatories, and 1 deposition unless otherwise agreed. Furthermore, if a franchisee does not comply with the dispute resolution provisions, they may be required to reimburse All Team for all expenses incurred in curing the breach, including attorney's fees, and pay a Dispute Resolution Fee of $50,000 as liquidated damages.