Is All Team responsible for delays caused by governmental regulations?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
and shall not define or limit any of the terms or provisions hereof.
- K. Governing Law. This Processing Agreement is made and accepted and shall be governed by, construed and enforced in accordance with, the laws of the State of Florida, without reference to any conflicts of law principles. USER irrevocably consents and submits to the jurisdiction of the state courts of, and federal courts in, the State of Florida for the purpose of any suit, action or proceeding relating hereto.
- L. Force Majeure. ATFC shall not be liable or responsible in any manner to USER for ATFC's failure to perform or delay in performance under this Processing Agreement when such failure or delay is due directly or indirectly to strike or other labor trouble, fire, flood, material or labor shortage, equipment failure, embargo, transit or delivery stoppage or delay, governmental act, regulation or order, war sabotage, civil insurrection, act of God or the public enemy, or any other cause beyond the reasonable control of ATFC.
- M.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) is not held liable for delays in performance that are directly or indirectly caused by governmental acts, regulations, or orders. This protection extends to various agreements, including the Processing Agreement and the Funding Agreement, shielding All Team from responsibility for delays stemming from governmental actions. This clause is part of a broader 'Force Majeure' provision.
This means that if a new law or regulation causes a delay in All Team's ability to provide services or fulfill its obligations to the franchisee, All Team will not be held liable for any resulting damages or losses. This could include delays in providing funding, processing payments, or any other aspect of the franchise operation that is affected by governmental actions. The franchisee bears the risk of such delays and their potential impact on their business.
This type of 'Force Majeure' clause is relatively common in franchise agreements, as it protects the franchisor from unforeseen circumstances beyond their control. However, it's important for a prospective All Team franchisee to understand the scope of this clause and how it might affect their business. Specifically, franchisees should consider what types of governmental actions could potentially cause delays and how they might mitigate the risks associated with such delays. Franchisees should also confirm whether this clause applies equally to both the franchisor and the franchisee, or if it primarily protects the franchisor.