What power does an All Team USER not have regarding ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to All Team's 2025 Franchise Disclosure Document, a USER does not have the authority to obligate All Team Franchise Corporation (ATFC) for any liabilities or expenses unless ATFC expressly agrees to it in writing. This limitation is outlined in the Funding Agreement, which governs the financial relationship between All Team and its franchisees.
This means that franchisees cannot enter into contracts, incur debts, or make financial commitments on behalf of All Team without prior written approval. This provision protects All Team from unauthorized financial obligations and ensures that the company maintains control over its financial liabilities. It also reinforces the independent contractor status of the franchisee, clarifying that the franchisee is responsible for their own business operations and financial obligations.
Furthermore, the agreement explicitly states that neither the USER nor any individual paid by the USER can be considered an employee of ATFC. This distinction is crucial for tax and legal purposes, as it clarifies that the franchisee is responsible for all tax and withholding requirements related to their employees. This section reinforces the separation between the franchisor and franchisee, emphasizing the franchisee's role as an independent business owner responsible for their own operational and financial decisions.