FDD Items 3 & 4 · 2025 filing
All Team Staffing litigation history
What All Team Staffing disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
A Plus Staffing Solutions, LLC v. All Team Franchise Corp. (AAA Case No. 01-16-0002-3433, filed 6/16/16). Franchisee A Plus alleged breaches of the Franchise, Software, and Funding Agreements and conversion; sought declaratory/injunctive relief and damages up to $75,000. ATFC counterclaimed for breach (damages up to $50,000), termination, and non-compete enforcement. Settled amicably and confidentially on 2/8/2017 with all agreements terminated and mutual release of claims.
Disclosure signals that moved the score
How this shows up in the verdict
- Litigation history (2017 settlement) with allegations of fund conversion and contract breaches suggests franchisor-franchisee trust issues
- Going Concern = FALSE indicates potential financial instability at franchisor level; reputational/operational risk if company fails
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?