Under the All Team Funding Agreement, is All Team liable for lost profits?

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 lost profits. Specifically, ATFC will not be held responsible for any lost profits, lost savings, or other consequential, incidental, or special damages. This limitation applies regardless of whether the damages result from the Funding Agreement itself, the transactions or relationships it covers, or ATFC's performance or failure to perform under the agreement. This protection applies even if ATFC was aware of the potential for such damages.

This clause significantly limits All Team's financial exposure under the Funding Agreement. Even if a franchisee (USER) experiences substantial financial losses, such as lost profits, due to actions or inactions by All Team, the franchisee will generally not be able to recover those losses from All Team. This allocation of risk is a critical point for prospective franchisees to consider.

It is important for potential All Team franchisees to fully understand this limitation of liability and to assess how it might affect their business. Franchisees may want to seek legal counsel to discuss the implications of this clause and to determine what, if any, recourse they might have in the event of significant financial losses. Understanding the scope and limitations of this clause is essential for making an informed decision about investing in an All Team franchise.