What triggers the start of the 12-month period for calculating All Team's maximum aggregate liability?
All_Team Franchise · 2025 FDDAnswer 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 12-month period used to calculate the maximum aggregate liability begins immediately before All Team receives written notice of a proper claim. The maximum aggregate liability of All Team, including its officers, owners, directors, members, managers, employees, affiliates, parents, or subsidiaries, is limited to the amount the user (franchisee) paid to All Team in the 12 months prior to this written notice.
This means that if a franchisee has a claim against All Team, the amount they can potentially recover is capped by the payments they've made to All Team in the year leading up to their claim. This could significantly limit the franchisee's recovery, especially if the claim is substantial but the payments made to All Team during that period were relatively low.
For a prospective All Team franchisee, this clause highlights the importance of understanding the potential limitations on All Team's liability. It also emphasizes the need to carefully document all payments made to All Team and to promptly provide written notice of any claims to ensure the best possible position for potential recovery. Franchisees should consult with a legal professional to fully understand the implications of this maximum liability clause.