Does All Team have any pending civil actions alleging fraud?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10 year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, Item 22 includes an addition to Item 3 that addresses pending civil actions alleging fraud. Specifically, it states that no party (including the franchisor, its predecessor, people identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark) has any pending administrative, criminal, or civil action alleging fraud. This extends to allegations of felonies, violations of franchise, antitrust, or securities law, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
This statement provides assurance to potential All Team franchisees that the franchisor and its related parties are not currently involved in any legal disputes concerning fraud or similar misconduct. This lack of pending actions suggests a degree of stability and ethical conduct within the organization, which can be a positive indicator for prospective franchisees.
However, it is important to note that this statement only refers to pending actions. It does not provide information about past actions that have been resolved, or actions that may arise in the future. A prospective franchisee should consider this statement in conjunction with other due diligence efforts, such as consulting with current and former franchisees and conducting independent background checks on the franchisor and its key personnel.