How is the maximum aggregate liability for All Team franchise claims 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 FRANCHISE RELATIONSHIP SET FORTH IN THIS AGREEMENT SHALL BE COLLECTIVELY LIMITED TO THE AMOUNT FRANCHISEE PAID TO ATFC WITHIN THE PRIOR 12 MONTHS IMMEDIATELY BEFORE WRITTEN NOTICE OF ANY PROPER CLAIM IS RECEIVED BY ATFC.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the maximum aggregate liability for All Team and its related parties (officers, owners, directors, etc.) regarding any claims arising from the franchise agreement or relationship is limited to the amount the franchisee paid to All Team within the 12 months immediately before All Team receives written notice of a claim.
This means that if a franchisee has a dispute with All Team, the maximum amount they can recover from All Team is capped at the total payments made to All Team in the year leading up to the claim. This could include franchise fees, royalty payments, or other fees paid to the franchisor.
This limitation on liability could significantly impact a franchisee's ability to recover damages in the event of a substantial dispute with All Team. Franchisees should carefully consider this limitation and consult with an attorney to understand its implications fully. It is a fairly common practice in franchising to limit the franchisor's liability in some way, but the specific calculation and look-back period can vary.