Under the All Team franchise agreement, can ATFC be held liable for prospective profits?

According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) cannot be held liable for prospective profits. The franchise agreement explicitly states that ATFC will not be liable to the franchisee for prospective profits for any conduct arising out of or under the agreement or ATFC's relationship with the franchisee. This limitation of liability is a standard practice in franchising, protecting the franchisor from claims based on hypothetical future earnings.

This provision means that if an All Team franchisee believes their franchise will be less profitable than anticipated, they cannot sue All Team for the lost potential profits. The franchisee's actual profits may vary significantly based on factors like location, management skills, and local market conditions. This clause protects All Team from being held responsible for these external factors that influence a franchisee's success.

Furthermore, the agreement also protects ATFC from liability for special, indirect, punitive, or consequential damages. This comprehensive limitation of liability aims to provide All Team with legal protection against various types of financial claims a franchisee might attempt to bring. Prospective franchisees should carefully consider this clause and understand that their financial success depends largely on their own efforts and market conditions, not on guarantees from All Team.