Does the All Team agreement define 'Proceeds' in relation to 'Collateral'?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) "Collateral" means the Accounts, Chattel Paper, Documents, Fixtures, Goods (including Equipment, Inventory, farm products, and consumer goods), General Intangibles, Instruments, money and all other personal property now owned or later acquired by Debtor and all Proceeds and products thereof.
(r) "Proceeds" means whatever is received upon the sale, exchange, collection or other disposition of any property in which Debtor grants Secured Party a security interest and includes insurance payments.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the agreement does define 'Proceeds' in relation to 'Collateral.' The agreement specifies that "Collateral" includes all personal property owned or acquired by the debtor, along with all "Proceeds" and products derived from it.
The definition of "Proceeds" is detailed as whatever is received from the sale, exchange, collection, or any other disposition of property in which the debtor grants the secured party a security interest. This definition explicitly includes insurance payments. This means that if the franchisee sells, exchanges, or otherwise disposes of any assets used as security for obligations to All Team, the resulting payments or assets received would be considered proceeds.
This definition is important for a prospective All Team franchisee because it clarifies what assets All Team has a security interest in. It also defines what happens to those assets if they are sold or exchanged. The franchisee should understand that All Team's security interest extends not only to the original collateral but also to anything of value received in exchange for that collateral, including insurance payments related to the collateral.