Under the All Team Funding Agreement, is All Team liable for consequential damages?

According to All Team's 2025 Franchise Disclosure Document, under the Funding Agreement, All Team Franchise Corporation (ATFC) is not liable to the user (USER) for any lost profits, lost savings, or other consequential, incidental, or special damages. This limitation applies regardless of whether the damages arise from the Funding Agreement itself, the transactions or relationships it contemplates, or ATFC's performance or failure to perform under the agreement. This protection extends even if ATFC was aware of the possibility of such damages.

This provision means that if a franchisee believes they have suffered financial losses beyond direct damages due to All Team's actions or inactions related to the Funding Agreement, the franchisee will likely be unable to recover those losses from All Team. Examples of consequential damages could include lost business opportunities, damage to reputation, or increased operational costs stemming from a breach of the Funding Agreement.

Such clauses limiting liability for consequential damages are relatively common in franchise agreements. Prospective franchisees should carefully consider the implications of this clause and consult with legal counsel to understand their rights and potential risks under the Funding Agreement. Understanding this limitation is crucial for assessing the overall risk and reward associated with investing in an All Team franchise.