How is the maximum aggregate liability of All Team calculated?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ATFC MAXIMUM AGGREGATE LIABILITY AND THE MAXIMUM AGGREGATE LIABILITY OF ANY OF ATFC'S OFFICERS, OWNERS, DIRECTORS, MEMBERS, MANAGERS, EMPLOYEES, AFFILIATES, PARENTS OR SUBSIDIARIES RELATED TO ANY AND ALL CLAIMS RELATING TO OR ARISING FROM THIS AGREEMENT OR THE RELATIONSHIP SET FORTH IN THIS AGREEMENT SHALL BE COLLECTIVELY LIMITED TO THE AMOUNT USER PAID TO ATFC WITHIN THE PRIOR 12 MONTHS IMMEDIATELY BEFORE WRITTEN NOTICE OF ANY PROPER CLAIM IS RECEIVED BY ATFC.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the maximum aggregate liability of All Team and its related parties is limited to the amount the franchisee (USER) paid to All Team within the 12 months immediately before All Team receives written notice of a proper claim. This limitation applies to any claims related to or arising from the Funding Agreement or the relationship established within the agreement.
This means that in the event of a dispute or claim against All Team, the maximum amount a franchisee can recover is capped by the payments they've made to All Team in the year leading up to the claim. This could significantly limit the franchisee's potential recovery, especially if the damages exceed the payments made during that period.
This clause protects All Team by limiting its financial exposure in case of lawsuits or disputes. For a prospective franchisee, it's crucial to understand this limitation and consider whether additional insurance or other risk mitigation strategies are necessary to cover potential losses exceeding this cap. Franchisees should consult with a legal professional to fully understand the implications of this liability clause.