Does the All Team General Release cover costs related to arbitration?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, Releasor hereby agrees, covenants and promises as follows:
Releasor, on behalf of itself and each of the persons and entities described in Section 2 hereof, hereby absolutely and forever releases, remises and discharges Franchisor and each of the persons and entities described in Section 3 hereof, from any and all claims, demands, damages, liabilities, costs (including, but not limited to reasonable attorneys' fees, accounting fees or experts' fees, and the costs of litigation, arbitration or other proceedings), expenses, liens, losses, charges, audits, investigations, injunctions, orders, rulings, subpoenas, controversies, obligations, debts, loans, interest, dues, accounts, awards, reckonings, bonds, bills, covenants, promises, undertakings, variances, trespasses, judgments, executions, sums of money owed, arbitrations, suits, decisions, proceedings, verdicts entered, issued, made or rendered and causes of action of every kind and nature whatsoever, whether now known or unknown, suspected or unsuspected, which Releasor now has, owns or holds, or at any time heretofore ever had, owned or held, or could, shall or may hereafter have, own or hold, pertaining to, arising out of or in connection with the Franchise Agreement, any related agreements or the franchisor-franchisee relationship between Releasor and Franchisor.
Notwithstanding the foregoing, if this General Release is entered into in conjunction with the renewal, assignment or transfer of the Franchise Agreement, the foregoing release shall not apply to any liability under any state franchise law which governs this Release.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the General Release covers costs related to arbitration. Specifically, the General Release discharges All Team from any and all claims, demands, damages, liabilities, and costs. This includes reasonable attorneys' fees, accounting fees, experts' fees, and the costs of litigation, arbitration, or other proceedings. This release extends to any claims arising out of or in connection with the Franchise Agreement or the franchisor-franchisee relationship between the franchisee and All Team.
This means that a franchisee signing the General Release waives their right to pursue claims against All Team for a wide range of issues, including financial losses, legal expenses, and other damages related to the franchise agreement. The release covers both known and unknown claims, providing a broad protection for All Team. However, there is an exception: if the General Release is connected to the renewal, assignment, or transfer of the Franchise Agreement, the release does not apply to any liability under any state franchise law which governs the Release.
For a prospective All Team franchisee, this has significant implications. Before signing the General Release, it is crucial to understand the full scope of the rights being waived. Franchisees should carefully consider any potential claims they might have against All Team, as the release will prevent them from pursuing those claims in the future. It is advisable to seek legal counsel to fully understand the implications of the General Release and whether it is appropriate to sign it, especially in the context of renewing, assigning, or transferring the franchise agreement.