Under the All Team Funding Agreement, is All Team liable for lost savings?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- N. Consequential Damages. In no event shall ATFC be liable to USER for any lost profits, lost savings or other consequential, incidental or special damages resulting from or arising out of or in connection with this Funding Agreement, the transaction or relationships contemplated hereby or ATFC's performance or failure to perform hereunder, even if ATFC shall have been advised of the possibility of such damages.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, under the Funding Agreement, All Team Franchise Corporation (ATFC) is not liable to the USER for any lost savings. The agreement specifies that ATFC will not be responsible for consequential, incidental, or special damages, even if they have been advised of the possibility of such damages. This limitation of liability is a standard practice in franchising and other business agreements.
This means that if a franchisee experiences lost savings as a result of the Funding Agreement or All Team's performance (or failure to perform), the franchisee cannot recover those losses from All Team. This protection extends to any situation arising from the Funding Agreement, the transactions it contemplates, or the relationships it creates.
This clause is designed to protect All Team from potentially large and unpredictable damage claims. Prospective franchisees should carefully consider this limitation of liability and understand that they bear the risk of any lost savings, profits, or other consequential damages. It is advisable to seek legal counsel to fully understand the implications of this provision before entering into the Funding Agreement.