factual

What is the timeframe used to calculate the maximum aggregate liability of All Team?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

ATFC MAXIMUM AGGREGATE LIABILITY AND THE MAXIMUM AGGREGATE LIABILITY OF ANY OF ATFC'S OFFICERS, OWNERS, DIRECTORS, MEMBERS, MANAGERS, EMPLOYEES, AFFILIATES, PARENTS OR SUBSIDIARIES RELATED TO ANY AND ALL CLAIMS RELATING TO OR ARISING FROM THIS AGREEMENT OR THE RELATIONSHIP SET FORTH IN THIS AGREEMENT SHALL BE COLLECTIVELY LIMITED TO THE AMOUNT USER PAID TO ATFC WITHIN THE PRIOR 12 MONTHS IMMEDIATELY BEFORE WRITTEN NOTICE OF ANY PROPER CLAIM IS RECEIVED BY ATFC.

Source: Item 23 — RECEIPT (FDD pages 34–161)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, the maximum aggregate liability of All Team and its related parties is limited to the amount the user (franchisee) paid to All Team within the 12 months immediately before written notice of any proper claim is received by All Team.

This means that if a franchisee has a claim against All Team, the maximum amount they can recover is capped at the total payments they made to All Team in the year leading up to the claim. This limitation applies to all claims related to the franchise agreement or the relationship established by it. It also extends to All Team's officers, owners, directors, members, managers, employees, affiliates, parents, and subsidiaries.

For a prospective All Team franchisee, this is a crucial consideration. It effectively limits All Team's financial exposure in case of disputes, but it also caps the franchisee's potential recovery, regardless of the actual damages they might suffer. Franchisees should carefully consider this limitation and potentially seek legal advice to understand its implications fully. This type of clause is not uncommon in franchise agreements, but the specific timeframe and scope can vary, so it's important to understand the details for All Team.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.