Can an All Team franchisee make agreements on behalf of ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Independent Contractor. ATFC and FRANCHISEE are independent contractors, and no partnership, fiduciary, joint venture, or employment relationship exists between them. FRANCHISEE shall conspicuously identify itself, at its Agency and in all dealings with the public as an independently owned business, and as an ATFC franchisee as required under this Agreement. Neither ATFC nor FRANCHISEE shall make any agreements or representations in the name of or on behalf of the other that their relationship is other than ATFC and franchisee.
- B. Indemnification. Under no circumstances shall ATFC be liable for any act, omission, debt, or other obligation of FRANCHISEE. FRANCHISEE will indemnify, defend and save harmless ATFC and its employees, agents, officers, directors, parents, subsidiaries, affiliates, successors and assigns ("Indemnitees") from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, costs and expenses (including without limitation legal fees and expenses) of any kind and nature whatsoever, including without limitation damages or injuries suffered by Indemnitees, which may be imposed on, incurred by or asserted against the Indemnitees in any way arising out of the acts or omissions of FRANCHISEE or its employees, agents, 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).
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are independent contractors and cannot make agreements or representations on behalf of All Team. The FDD states that the franchisee must identify their agency as independently owned and as an All Team franchisee in all dealings with the public.
This means that an All Team franchisee operates their business independently and is responsible for their own actions and obligations. They cannot bind All Team to any agreements or represent themselves as anything other than an independent franchisee. This is a common arrangement in franchising, where the franchisee owns and operates their business while using the franchisor's brand and system.
Furthermore, All Team is not liable for any act, omission, debt, or other obligation of the franchisee. The franchisee is required to indemnify All Team from any liabilities, losses, damages, penalties, claims, actions, costs, and expenses arising out of the franchisee's acts or omissions. This protects All Team from legal or financial repercussions resulting from the franchisee's business operations.