Is All Team subject to a currently effective injunctive order relating to the franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the New York State Law Addendum addresses injunctive or restrictive orders. Specifically, it states that no party (including the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the franchisor's principal trademark) is subject to a currently effective injunctive or restrictive order or decree relating to the franchise. This includes orders under Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from concluded or pending actions brought by a public agency. It also covers orders from national securities associations or exchanges, and injunctive or restrictive orders related to other business activities resulting from actions by a public agency or department.
This provision offers some assurance to potential All Team franchisees in New York that the franchisor is not currently under any legal restrictions that could impact the franchise operations. It indicates that All Team has not faced legal actions leading to such orders, which could be a positive factor for prospective franchisees assessing the stability and legal standing of the franchise system.
It is important to note that this statement is specific to the New York State Law Addendum and applies to franchises located in New York. Franchisees in other states should refer to the relevant addenda or sections of the FDD to determine if similar protections or disclosures exist for their specific location. Furthermore, this statement only reflects the current status and does not guarantee that All Team will not be subject to such orders in the future.