Does the maximum aggregate liability of All Team include its affiliates?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- P. Maximum Liability. 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 extends to All Team's affiliates. Specifically, the document states that the maximum aggregate liability applies not only to All Team Franchise Corporation (ATFC) itself but also to its officers, owners, directors, members, managers, employees, affiliates, parents, or subsidiaries.
This means that if a franchisee has a claim against All Team or any of the listed related parties, the total amount that can be recovered from all of them collectively is limited to the amount the franchisee paid to All Team within the 12 months immediately before All Team received written notice of the claim. This limitation covers all claims related to or arising from the franchise agreement or the relationship established by the agreement.
For a prospective All Team franchisee, this is an important consideration. It caps the potential recovery in case of disputes. While it protects All Team and its related parties from potentially large payouts, it also limits the franchisee's ability to recoup losses beyond the payments made in the previous year, regardless of the actual damages incurred. Franchisees should carefully consider this limitation when evaluating the potential risks and rewards of investing in an All Team franchise.