In the All Team agreement, what is considered a 'convenient place' for the debtor to assemble the Collateral?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Remedies*.* Upon the occurrence of a Default and at any time thereafter (i) Secured Party may declare all Liabilities secured by this Agreement or any of them (notwithstanding any provisions of them) to be immediately due and payable, and the same thereupon will be due and payable without further notice to Debtor; (ii) Secured Party may exercise from time to time the rights and remedies described in the Uniform Commercial Code in effect for the State of Florida and any other rights and remedies available to it under any other applicable law, and (iii) Debtor, at its expense, shall assemble the Collateral and make it available to Secured Party at a convenient place acceptable to Secured Party.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, in the event of a default, the franchisee (Debtor) is responsible for assembling the collateral and making it available to All Team (Secured Party). The agreement specifies that the location for assembling the collateral must be a 'convenient place acceptable to Secured Party.'
This means that All Team has the ultimate authority to determine what constitutes a 'convenient place.' While the franchisee is responsible for assembling the collateral, the location must be one that All Team finds suitable. This could potentially create a burden for the franchisee, as they may need to transport the collateral to a location that is not easily accessible for them but is preferred by All Team.
Prospective All Team franchisees should consider this clause carefully, as it gives All Team significant control over the disposition of the collateral in the event of a default. It would be prudent to discuss with All Team what factors they consider when determining a 'convenient place' and to try to negotiate terms that would minimize potential burdens on the franchisee.