Is All Team responsible for delays caused by transit or delivery stoppage?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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 any delays in performance under the Processing Agreement that are caused directly or indirectly by a transit or delivery stoppage. This protection extends to various other events beyond All Team's control. This is outlined in the Force Majeure clause of the agreement.
This means that if a franchisee experiences disruptions or losses due to shipping delays or stoppages, they cannot hold All Team responsible for those issues. The franchisee bears the risk of these potential disruptions, which can include strikes, fires, floods, shortages of materials or labor, equipment failures, embargos, governmental actions, war, sabotage, civil unrest, acts of God, or public enemies.
This type of clause is relatively standard in franchise agreements, as it protects the franchisor from liability for events outside of their direct control. However, it's crucial for a prospective All Team franchisee to understand the scope of this clause and its potential impact on their business operations. Franchisees should consider how they might mitigate risks associated with potential transit or delivery stoppages, such as diversifying suppliers or maintaining safety stock of critical items.