Does the All Team franchise agreement include a waiver of trial by jury?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
S. Limitation of Legal Actions**.**
-
- IN NO EVENT WILL ATFC BE LIABLE TO FRANCHISEE FOR PROSPECTIVE PROFITS OR SPECIAL, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES FOR ANY CONDUCT ARISING OUT OF OR UNDER THIS AGREEMENT OR ATFC'S RELATIONSHIP WITH FRANCHISEE.
-
- THE PARTIES WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THEM RELATING TO OR ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE RELATIONSHIP OF THE PARTIES.
-
- ANY DISAGREEMENT BETWEEN FRANCHISEE (AND ITS GUARANTORS AND OWNERS) AND ATFC (AND ITS AFFILIATES AND OWNERS) WILL BE CONSIDERED UNIQUE AS TO ITS FACTS AND MUST NOT BE BROUGHT AS A CLASS ACTION AND FRANCHISEE (AND ITS GUARANTORS AND OWNERS) WAIVE ANY RIGHT TO PROCEED AGAINST ATFC (AND ITS AFFILIATES, OWNERS, MEMBERS, MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCESSORS AND ASSIGNS) BY WAY OF CLASS ACTION, OR BY WAY OF A MULTI-PLAINTIFF, CONSOLIDATED OR COLLECTIVE ACTION.
-
- WITH RESPECT TO ANY AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ATFC'S RELATIONSHIP WITH FRANCHISEE, FRANCHISEE WILL BE BARRED UNLESS A JUDICIAL PROCEEDING IS COMMENCED WITHIN ONE (1) YEAR FROM THE DATE ON WHICH FRANCHISEE KNEW OR SHOULD HAVE KNOWN OF THE FACTS GIVING RISE TO THAT CLAIM.
-
- ATFC MAXIMUM AGGREGATE LIABILITY AND THE MAXIMUM AGGREGATE LIABILITY OF ANY OF ATFC'S OFFICERS, OWNERS, DIRECTORS, MEMBERS, MANAGERS, EMPLOYEES, AFFILIATES, PARENTS OR SUBSIDIARIES RELATED TO ANY AND ALL CLAIMS RELATING TO OR ARISING FROM THIS AGREEMENT OR THE FRANCHISE RELATIONSHIP SET FORTH IN THIS AGREEMENT SHALL BE COLLECTIVELY LIMITED TO THE AMOUNT FRANCHISEE PAID TO ATFC WITHIN THE PRIOR 12 MONTHS IMMEDIATELY BEFORE WRITTEN NOTICE OF ANY PROPER CLAIM IS RECEIVED BY ATFC.
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 includes a waiver of trial by jury. Specifically, the document states that both All Team and the franchisee waive their right to a jury trial for any legal actions related to the franchise agreement or their relationship. This means that any disputes would be resolved by a judge rather than a jury.
This waiver has significant implications for prospective franchisees. By agreeing to waive a jury trial, franchisees give up the right to have their case decided by a panel of citizens. Instead, a judge will make the final decision, which could be seen as more predictable but potentially less sympathetic to the franchisee's perspective. Jury waivers are relatively common in franchise agreements, as they can streamline legal proceedings and potentially reduce litigation costs for both parties.
However, it's important to note that the enforceability of jury waivers can vary by state. For example, the FDD includes addenda for Minnesota and Virginia that address inconsistencies between the standard agreement and state franchise laws. In Minnesota, the franchise agreement cannot require a waiver of a jury trial. Therefore, prospective franchisees should be aware of the laws in their specific state and consult with an attorney to understand the full implications of this waiver.
Furthermore, the All Team franchise agreement also stipulates that any disagreement between the franchisee and All Team must not be brought as a class action, and the franchisee waives any right to proceed against All Team by way of class action, or by way of a multi-plaintiff, consolidated or collective action. This further limits the franchisee's legal options in the event of a dispute with the franchisor.