What remedies is All Team entitled to if a franchisee breaches the franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ce only and shall not define, limit, or extend the scope or intent of this Agreement or any provision thereof.
- J. Effect. This Agreement shall be binding upon and inure to the benefit of the parties, their legal representatives, heirs, administrators, executors, their permitted successors and assigns.
- K. Remedies. In addition to any other remedies to which it may be entitled, ATFC shall be entitled without bond to entry of injunctive relief and orders of specific performance enforcing the provisions of this Agreement, in the event FRANCHISEE actually or anticipatorily breaches this Agreement. If either party shall incur any attorney's fees or other expenses in seeking enforcement of this Agreement, court shall have the right to award the prevailing party reasonable expenses, including attorney's fees, costs and other expenses reasonably and necessarily incurred as the court deems appropriate under the circumstances. No right or remedy conferred upon either party is intended to be exclusive, and every such right or remedy shall be cumulative and in addition to any other rights or remedies available under this Agreement, or otherwise. For purposes of this Agreement, a termination shall include a termination for any reason, expiration, cancellation, failure to renew, assignment or Transfer.
- L. No Warranty. FRANCHISEE acknowledges that, except as otherwise specifically stated herein, ATFC has the absolute right to exercise its own judgment on various matters about this Agreement and the Manual, and has the absolute right to approve, disapprove, give its consent and refuse to consent to FRANCHISEE's requests in its sole and absolute discretion. FRANCHISEE agrees that ATFC's action, refusal to act, approval, disapproval, consent, or refusal of consent is not, and shall not be deemed, a representation, warranty, certification or guarantee by ATFC about that which is acted upon or refused consent, or about any appropriateness, legality, profitability, or success related thereto. No ATFC action, refusal to act, approval, disapproval, consent or refusal to consent is, or shall be deemed, a guarantee, warranty, or representation that the Agency complies with, or meets any local, municipal, state, federal, or other laws or regulations relating to the offer of services or otherwise.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee breaches the franchise agreement, All Team is entitled to injunctive relief and orders of specific performance without needing to post a bond. This means All Team can seek court orders to compel the franchisee to stop certain actions or to fulfill their obligations under the agreement. These remedies are available if the franchisee actually breaches the agreement or if All Team anticipates a breach.
Additionally, if All Team incurs attorney's fees or other expenses while trying to enforce the agreement, the court has the right to award All Team reasonable expenses, including attorney's fees and costs. The FDD specifies that no right or remedy conferred upon either party is intended to be exclusive, and every such right or remedy shall be cumulative and in addition to any other rights or remedies available under the agreement or otherwise.
Furthermore, if a franchisee fails to comply with the dispute resolution provisions outlined in the franchise agreement, All Team can require the franchisee to reimburse All Team for all expenses incurred in rectifying the breach, including attorney's fees and costs related to dismissing any improperly filed claim. In this case, the franchisee will also have to pay All Team a Dispute Resolution Fee of $50,000. All Team has the right to collect these amounts in addition to exercising any and all other rights All Team may have for non-compliance under this Agreement.
However, for franchisees located in Minnesota, certain restrictions apply. Minnesota law prohibits All Team from requiring the franchisee to consent to liquidated damages or termination penalties. Additionally, the franchisee cannot consent to All Team obtaining injunctive relief, although All Team may still seek injunctive relief through the courts. These Minnesota-specific provisions take precedence over any conflicting terms in the standard franchise agreement.