Is All Team responsible for delays caused by war?
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 any delays in performance that are directly or indirectly caused by war. This protection extends to various agreements, including the Processing Agreement and the Funding Agreement, shielding All Team from responsibility for delays stemming from war. This clause is part of a broader 'force majeure' provision.
This means that if a war disrupts All Team's ability to fulfill its obligations to the franchisee, such as providing funding or processing payments, All Team will not be held legally responsible for the resulting delays. The 'force majeure' clause also covers other events beyond All Team's control, such as strikes, fires, floods, shortages, equipment failures, governmental actions, sabotage, civil insurrections, acts of God, or public enemy actions.
For a prospective All Team franchisee, this clause represents a risk. While it protects All Team from liability, it also means that franchisees may experience disruptions to their business operations due to events like war, without recourse against All Team. It is important for franchisees to understand this allocation of risk and consider how such events could impact their business.
Franchisees should evaluate their own ability to mitigate these risks, perhaps through insurance or contingency planning. Understanding the scope of the 'force majeure' clause and its potential impact is a crucial part of assessing the overall risk and reward of investing in an All Team franchise.