Can an All Team franchisee deduct or set-off any charges that are properly due?

According to All Team's 2025 Franchise Disclosure Document, franchisees are required to make payments promptly without any deductions or set-offs. This applies to all charges that are properly due, including various fees. Franchisees are explicitly prohibited from withholding payments based on any perceived non-performance by All Team of its obligations under the franchise agreement. This means that franchisees cannot reduce or delay payments, even if they believe All Team has not fulfilled its responsibilities.

This policy has significant implications for prospective All Team franchisees. It means that franchisees must have sufficient capital to meet all payment obligations, regardless of any disputes or issues they may encounter with All Team's performance. Failure to make timely and full payments can result in penalties, interest charges, and potential legal action by All Team. Franchisees need to be aware of this strict payment policy and factor it into their financial planning.

The requirement for prompt payment without deduction or set-off is a fairly standard practice in franchising. Franchisors typically want to ensure a consistent revenue stream and avoid disputes over payments. However, it places a greater burden on the franchisee to resolve any issues separately while still meeting their financial obligations. Prospective franchisees should carefully consider this aspect of the franchise agreement and seek legal advice if they have concerns about the fairness or enforceability of this provision.