What does the All Team franchise consider the Dispute Resolution Fee to be?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
vision will continue in full force and effect subsequent to and notwithstanding the Transfer, or the termination or expiration of the term of this Agreement. The arbitration will be conducted on an individual, not a class-wide basis. None of the parties to the arbitration will be entitled to consolidation of the arbitration proceedings with the proceedings of any third party, nor will the arbitrator or any court be empowered to order a consolidation of proceedings with any third party.
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- Dispute Resolution Fee. In the event that the USER or its guarantors have not complied with the provisions in this Section on Dispute Resolution, USER shall reimburse ATFC for all of its expenses incurred in curing the USER's breach (including, without limitation, ATFC's attorneys' fees and costs related to dismissing and responding to any improperly filed claim) and pay the ATFC a Dispute Resolution Fee of $50,000 ("Dispute Resolution Fee"). USER acknowledges and agrees that the ATFC will be damaged by such breach. USER agrees that a
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Dispute Resolution Fee of $50,000 is considered liquidated damages and not a penalty. This fee is imposed if the franchisee (USER) or its guarantors fail to comply with the dispute resolution provisions outlined in the agreement.
The FDD specifies that All Team acknowledges it will be damaged by a breach of the dispute resolution provisions. Due to the difficulty in precisely calculating the full extent of these damages, both parties agree that the $50,000 Dispute Resolution Fee is a reasonable estimate of the damages All Team would incur.
This means that if a franchisee violates the dispute resolution terms, they will be required to pay All Team $50,000 in addition to reimbursing All Team for all expenses incurred in curing the franchisee's breach, including attorney's fees and costs related to dismissing any improperly filed claim. All Team retains the right to collect these amounts and exercise any other rights for non-compliance under the agreement.