On what page of the All Team FDD is the 'Notice Regarding Independent Operations' located?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Independent Contractor. Nothing in this Funding Agreement shall be construed to constitute either party as the employee, representative or, except to the extent expressly provided herein, the agent of the other, or to constitute ATFC and USER as partners or joint venturers.
USER shall not have the power, and shall not represent or imply that it has the power, to obligate ATFC for any liabilities or expenses, except as otherwise expressly agreed to in writing by ATFC.
Neither USER nor any individual whose compensation for services is paid by USER in any way, directly or indirectly, expressly or by implication, shall be construed to be an employee of ATFC for any purpose, including, without limitation any tax or withholding requirements levied or fixed by any governmental law, rule or regulation is solely responsible for the day-to-operations of the Business.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
Based on the 2025 All Team Franchise Disclosure Document, a notice regarding the independent contractor status between All Team Franchise Corporation (ATFC) and the franchisee (USER) is included in the funding agreement. Specifically, it states that nothing in the Funding Agreement should be interpreted as creating an employer-employee, representative, or agent relationship between ATFC and the USER, except as expressly provided in the agreement. Furthermore, it clarifies that ATFC and USER are not to be considered partners or joint venturers. The USER does not have the authority to obligate ATFC for any liabilities or expenses unless explicitly agreed to in writing by ATFC.
The FDD also specifies that neither the USER nor any individual paid by the USER will be considered an employee of ATFC for any purpose, including tax or withholding requirements imposed by governmental laws or regulations. The USER is solely responsible for the daily operations of the business. This section of the FDD emphasizes the franchisee's autonomy in running their All Team franchise and clarifies that they are not an employee of the franchisor.
This distinction is crucial for prospective franchisees as it outlines their responsibilities and liabilities as independent business owners. Franchisees should understand that they are responsible for their business's operations, including managing employees, handling financial obligations, and ensuring compliance with applicable laws and regulations. This arrangement also affects tax obligations and liability issues, as franchisees are responsible for their own taxes and are liable for their business's actions. The FDD excerpt does not specify the page number where this notice is located, so a prospective franchisee should confirm the exact location of this clause within the document.