What happens if mediation fails to resolve the All Team franchise dispute?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, the obligation of this Section to mediate will not be binding with respect to claims brought by ATFC and relating to ATFC's trademarks, service marks, patents, or copyrights,; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.
- Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between ATFC and USER arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in Tampa, FL when the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims ATFC has relating to its trademarks, service marks, patents, or copyrights; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties shall be brought in either federal or state courts in Tampa, FL. Both parties agree to submit to the jurisdiction of the state and federal court in Tampa, FL.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if mediation fails to resolve a dispute between All Team Franchise Corporation (ATFC) and the franchisee (USER), the next step depends on the nature of the claim and the jurisdiction of the federal court. For most disputes arising from the franchise agreement or relationship, the FDD stipulates that the matter will be filed in the Federal District Court in Tampa, FL, provided that the requirements outlined in 28 U.S.C. § 1332 are met. Both parties consent to the jurisdiction of this court and waive any objections to its jurisdiction or venue. This means that All Team franchisees may have to travel to Florida to resolve disputes.
However, if the federal court in Tampa lacks jurisdiction over the dispute, the parties must submit to binding arbitration, which will also be conducted in Tampa, FL, unless both parties agree to a different location. This arbitration will follow the American Arbitration Association (AAA) Rules, unless those rules conflict with the terms of the franchise agreement, in which case the agreement's terms will prevail. The arbitrator must be mutually selected by All Team and the franchisee and possess at least 5 years of experience in franchise law. Each party is limited to 25 document requests, 15 interrogatories, and 1 deposition unless otherwise agreed.
Notably, the requirement to mediate does not apply to claims brought by All Team relating to its trademarks, service marks, patents, or copyrights; claims concerning leases or subleases of real property between the parties; or requests by All Team for temporary restraining orders, preliminary injunctions, permanent injunctions, or other proceedings to obtain interim or permanent relief. These specific types of claims can be brought in either federal or state courts in Tampa, FL, and both parties consent to the jurisdiction of those courts. This means that All Team retains the right to pursue certain legal actions without first engaging in mediation, potentially expediting the resolution of critical issues related to intellectual property or immediate injunctive relief.