Does the All Team franchisee represent that their signature on the agreement violates any other agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
XX. WARRANTIES AND REPRESENTATIONS OF FRANCHISEE
- A. FRANCHISEE HAS BEEN ADVISED TO MAKE AN INDEPENDENT INVESTIGATION OF ATFC'S OPERATIONS. ATFC HAS NOT AND DOES NOT REPRESENT THAT FRANCHISEE CAN EXPECT TO ATTAIN A SPECIFIC LEVEL OF SALES, PROFITS, OR EARNINGS. FRANCHISEE HAS BEEN ADVISED TO OBTAIN INDEPENDENT PROFESSIONAL ADVICE REGARDING THIS FRANCHISE. FRANCHISEE UNDERSTANDS THAT IT MAY SUSTAIN LOSSES AS A RESULT OF THE OPERATION OR THE CLOSING OF THE BUSINESS. FRANCHISEE UNDERSTANDS THAT THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT INVOLVES A HIGH DEGREE OF FINANCIAL RISK AND DEPENDS TO A LARGE DEGREE ON FRANCHISEE'S SKILLS, ABILITIES, INITIATIVE, AND HARD WORK.
- B. FRANCHISEE REPRESENTS TO ATFC THAT FRANCHISEE'S SIGNATURE ON AND PERFORMANCE OF THIS AGREEMENT DOES NOT VIOLATE OR CONSTITUTE A BREACH OF THE TERMS OF ANY OTHER AGREEMENT OR COMMITMENT TO WHICH FRANCHISEE, ITS GUARANTORS OR ANY OF ITS AFFILIATES ARE A PARTY.
- C. UNDER APPLICABLE U.S. LAW, INCLUDING WITHOUT LIMITATION EXECUTIVE ORDER 1224, SIGNED ON SEPTEMBER 23, 2001 (THE "ORDER"), ATFC IS PROHIBITED FROM ENGAGING IN ANY TRANSACTION WITH ANY PERSON ENGAGE IN, OR WITH A PERSON AIDING ANY PERSON ENGAGED IN ACTS OF TERRORISM AS DEFINED IN THE ORDER. ACCORDINGLY, FRANCHISEE DOES NOT, AND HEREAFTERE WILL NOT ENGAGE IN ANY TERRORIST ACTIVITY. IN ADDITION, FRANCHISEE IS NOT AFFILIATED WITH AND DOES NOT SUPPORT ANY INDIVIDUAL OR ENTITY ENGAGED IN, CONTEMPLATING, OR SUPPORTING TERRITORIST ACTIVITY. FINALLY, FRANCHISEE IS NOT ACQUIRING THE RIGHTS GRANTED UNDER THIS AGREEMENT WITH THE INTENT TO GENERATE FUNDS TO CHANNEL TO ANY INDIVIDUAL OR ENTITY ENGAGED IN, CONTEMPLATING, OR SUPPORTING TERRORIST ACTIVITY, OR TO OTHERWISE SUPPORT OR FUTHER ANY TERRORIST ACTIVITY.
- D. FRANCHISEE REPRESENTS AND WARRANTS THAT IT IS AWARE OF AND UNDERSTANDS ALL APPLICABLE LAWS RELATING TO THE LICENSING AND OPERATION OF AN EMPLOYMENT AGENCY AND PLACEMENT FIRM OF THE AREA, AS WELL AS ALL APPLICABLE REQUIREMENTS RELATING TO THE EMPLOYMENT OF UNION MEMBERS IN THE AREA. FRANCHISEE WILL HAVE AND MAINTAIN ALL NECESSARY LICENSES FOR THE FRANCHISEE AND ITS EMPLOYEES AND WILL COMPLY WITH ALL APPLICABLE UNION REQUIREMENTS THROUGHOUT THE TERM OF THIS AGREEMENT.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee represents to All Team that their signature on and performance of the franchise agreement does not violate or constitute a breach of the terms of any other agreement or commitment to which the franchisee, its guarantors, or any of its affiliates are a party. This is a standard clause in franchise agreements.
This representation is important because All Team wants to ensure that the franchisee is legally able to enter into the franchise agreement and fulfill its obligations. If the franchisee were already bound by another agreement that conflicted with the All Team franchise agreement, it could create legal problems for both the franchisee and All Team. For example, if the franchisee had signed a non-compete agreement with a competitor of All Team, that agreement could prevent the franchisee from operating an All Team franchise.
This clause protects All Team from potential legal issues arising from the franchisee's pre-existing obligations. It also places a responsibility on the franchisee to ensure they are not violating any prior agreements by signing the All Team franchise agreement. Franchisees should carefully review any existing contracts or commitments before signing a new franchise agreement to avoid potential conflicts.
In the event of a breach of this representation, All Team would likely have grounds to terminate the franchise agreement. Additionally, the franchisee could be liable for damages to All Team resulting from the breach. Therefore, it is crucial for prospective franchisees to fully understand and comply with this representation.