Is an All Team franchisee required to indemnify All Team in the event of a lawsuit resulting from the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to indemnify us in the event of any suit resulting from the Funding Agreement; you would be responsible for paying reasonable attorneys' fees. If there is a dispute, it is to be settled by mediation and the prevailing party is allowed to collect reasonable attorney's fees.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are required to indemnify All Team in the event of a lawsuit resulting from the Funding Agreement. This means that if a lawsuit arises from the Funding Agreement, the franchisee will be responsible for protecting All Team from financial loss or damage.
The FDD specifies that the franchisee would be responsible for paying reasonable attorneys' fees in such a situation. Furthermore, in the event of a dispute, the FDD states that it is to be settled by mediation, and the prevailing party is allowed to collect reasonable attorney's fees.
This requirement is a significant obligation for the franchisee. It's essential for prospective franchisees to fully understand the terms of the Funding Agreement and the potential liabilities associated with it. Franchisees should consult with legal counsel to assess the risks and ensure they have adequate protection, such as insurance coverage, to cover potential indemnity obligations.