factual

What is the All Team USER prohibited from representing regarding their power to obligate ATFC?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

USER shall not have the power, and shall not represent or imply that it has the power, to obligate ATFC for any liabilities or expenses, except as otherwise expressly agreed to in writing by ATFC.

Source: Item 23 — RECEIPT (FDD pages 34–161)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, the USER (franchisee) is explicitly prohibited from representing or implying that they have the authority to obligate ATFC (All Team Franchise Corporation) for any liabilities or expenses. This restriction is in place unless ATFC provides express written consent agreeing to such obligations. This stipulation is outlined within the Funding Agreement.

This provision underscores the independent contractor relationship between the franchisee and All Team. It clarifies that franchisees cannot create financial or legal obligations on behalf of the franchisor without explicit written authorization. This protects All Team from potential liabilities arising from the franchisee's actions.

For a prospective All Team franchisee, this means they must be very clear in all their dealings with third parties (vendors, customers, etc.) that they are operating an independent business and cannot bind All Team to any commitments. Any deviation from this could lead to legal issues and potential breaches of the franchise agreement. Franchisees should seek written approval from All Team for any situation where they believe it's necessary to represent that All Team will bear responsibility for certain liabilities or expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.