Under what circumstances must an All Team franchisee reimburse expenses and costs related to customer complaints?

According to All Team's 2025 Franchise Disclosure Document, franchisees are required to reimburse All Team for expenses and costs the franchisor incurs to resolve customer complaints. This means that if a customer of an All Team franchise has a complaint that requires All Team to take action and spend money to resolve, the franchisee will be responsible for covering those costs.

This could include a variety of expenses, such as the cost of investigating the complaint, providing refunds or discounts to the customer, or taking corrective action to address the issue that led to the complaint. The FDD specifies that these costs are the 'actual costs and expenses' incurred by All Team. The franchisee is obligated to pay these costs 'on demand,' meaning All Team can request reimbursement at any time after the expenses are incurred.

This policy highlights the importance of maintaining high levels of customer satisfaction for All Team franchisees. Failure to adequately address customer concerns can result in the franchisee incurring additional expenses to reimburse All Team for their remediation efforts. This arrangement incentivizes franchisees to proactively manage customer relationships and resolve issues promptly to avoid escalating costs.