For All Team franchisees, what specific action is required regarding disputes?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
O. Dispute Resolution.
- Mediation. Before any party may bring an action in court for any controversy, dispute or claim between ATFC and USER arising from this Agreement or the franchise relationship, the parties must first have a conference with each other to try to resolve the dispute. If this fails to bring about a resolution, the dispute will first be submitted to non-binding mediation (the "Mediation") in Tampa, Florida unless the parties mutually agree to another location. The Mediation shall be conducted in accordance with then-current AAA mediation rules (the "AAA Mediation Rules") except to the extent the AAA Mediation Rules differ from the terms of this Agreement, in which event the terms of this Agreement shall be applied. Notwithstanding the foregoing, the mediation does not have to be conducted under the AAA. ATFC and USER will select the mediator. If the parties cannot agree on the selection of a mediator, the mediation shall be conducted through the AAA who will make the selection of mediator using their rules and guidelines. The cost of the Mediation, including the mediator's fee and expenses, shall be paid by the USER. All negotiations and mediation proceedings (including without limitation, discovery conducted therein, as well as all statements and settlement offers made by either party or the mediator in connection with the Mediation) shall be strictly confidential, shall be considered as compromise and settlement negotiations for purposes of the Federal Rules of Evidence and state rules of evidence, and shall not be admissible or otherwise used in connection with any court or arbitration proceeding for any purpose. The mediator may not be called as a witness in any court or arbitration proceeding for any purpose. If the parties, after a good faith effort to settle the dispute using Mediation, are unable to reach settlement, ATFC and USER agree that the dispute will be resolved according to the Sections below. Failure to submit the dispute to Mediation prior to commencing any litigation or arbitration proceeding shall be grounds for dismissal of the litigation or arbitration proceedings.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, before a franchisee can initiate a court action regarding any dispute or claim against All Team Franchise Corporation (ATFC) arising from the franchise agreement or the franchise relationship, they must first participate in a conference with ATFC to attempt to resolve the issue. If the conference does not lead to a resolution, the franchisee is then required to submit the dispute to non-binding mediation. This mediation is to take place in Tampa, Florida, unless both parties agree to an alternative location.
The mediation process should follow the rules established by the American Arbitration Association (AAA), but if those rules conflict with the terms outlined in the franchise agreement, the agreement's terms will take precedence. While mediation does not necessarily have to be conducted through the AAA, the mediator will be jointly selected by All Team and the franchisee. If an agreement on the mediator cannot be reached, the AAA will appoint one according to their rules. The franchisee is responsible for covering the costs associated with the mediation, including the mediator's fees and expenses.
All negotiations and mediation proceedings are to be kept strictly confidential and are considered compromise and settlement negotiations, making them inadmissible in any subsequent court or arbitration proceedings. Furthermore, the mediator cannot be called as a witness in any future legal proceedings. Only if mediation fails to produce a settlement after a good faith effort can the franchisee proceed with litigation or arbitration. Failure to engage in mediation before starting any legal action can result in the dismissal of those proceedings.