Does the All Team franchise agreement specify that officers act in a representative capacity?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Representative Capacity.
In all of their dealings with FRANCHISEE, the officers, directors, employees and agents of ATFC act only in their representative capacity for ATFC, and not in any individual capacity or on behalf of ATFC or any of ATFC's affiliates or agents.
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 addresses the capacity in which the franchisor's officers act. Specifically, the agreement states that when All Team's officers, directors, employees, and agents deal with the franchisee, they are acting solely in their representative capacity for All Team.
This means that these individuals are acting on behalf of the corporation and not in any individual capacity. This distinction is important because it clarifies that the franchisee's dealings are with the corporation itself, All Team Franchise Corporation, and not with the individual officers or employees personally. This clause protects the officers and employees from personal liability related to the franchise agreement.
For a prospective All Team franchisee, this clause provides assurance that the agreements and obligations are with the corporation, which is a separate legal entity. It also means that any legal recourse would typically be against the corporation rather than individual officers, unless there is evidence of direct personal misconduct. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's personnel while ensuring the franchisee understands the business relationship is with the franchise entity.