What happens if All Team withholds consent wrongfully?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
If it is found that ATFC wrongfully withheld any consent pursuant to this Agreement, FRANCHISEE's sole remedy for such failure shall be to require ATFC to grant such consent.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if All Team wrongfully withholds consent, the franchisee's sole remedy is to require All Team to grant the consent. This means that a franchisee cannot sue for damages or other forms of compensation if All Team improperly withholds consent. The franchisee's only recourse is to compel All Team to give the consent that was wrongfully withheld.
This provision limits the franchisee's legal options in the event of a dispute over All Team's consent. It is important to note that this clause does not define what constitutes "wrongfully withheld" consent, which could be a point of contention. The franchisee would likely need to demonstrate that All Team's refusal to grant consent was unreasonable or not in accordance with the franchise agreement.
For a prospective All Team franchisee, this means that if you believe All Team is wrongly denying you consent for something (such as a transfer), your only legal option is to force them to grant that consent. You cannot seek financial compensation for any losses you might incur due to the delay or denial. This highlights the importance of understanding the conditions under which All Team's consent is required and ensuring those conditions are clearly defined in the franchise agreement.