Under what circumstances will disputes involving All Team be submitted to binding arbitration?

According to All Team's 2025 Franchise Disclosure Document, disputes will be submitted to binding arbitration if the federal court in Tampa, FL, does not have subject matter jurisdiction over the dispute. In such cases, the parties will submit to binding arbitration, which will be conducted in Tampa, FL, unless both parties agree to a different location. The arbitration will follow the American Arbitration Association (AAA) rules, but if those rules conflict with the franchise agreement, the agreement's terms will take precedence. The arbitration does not have to be conducted under the AAA.

The arbitrator must be selected mutually by both parties and possess at least five years of experience in franchise law. During arbitration, each party is limited to 25 document requests, 15 interrogatories, and one deposition unless they agree otherwise. If the dispute involves All Team Franchise Corporation (ATFC), its affiliates, officers, directors, agents, brokers, or employees, these individuals or entities will also be included in the arbitration if they consent to participate.

It's important to note that before initiating any court action, both parties must first attempt to resolve the dispute through a conference and non-binding mediation in Tampa, Florida, or another mutually agreed-upon location. The cost of mediation, including the mediator's fees and expenses, will be paid by the franchisee (USER). Failure to participate in mediation before starting litigation or arbitration can result in dismissal of the proceedings. However, All Team is not obligated to mediate claims relating to its trademarks, service marks, patents, or copyrights; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by ATFC for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.

An arbitrator can award damages, specific performance, attorney's fees, and costs, but cannot award punitive, exemplary, or consequential damages. The arbitrator's decision is binding, but All Team can appeal the award in federal or state court if it is not reasoned or consistent with the franchise agreement. An arbitration decision in one case is not binding on All Team in other disputes and cannot be used as evidence in other proceedings.