Does the All Team agreement grant the Secured Party power of attorney?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Power of Attorney.
Debtor appoints Secured Party as Debtor's attorney-in-fact with full power and authority, to endorse and collect all drafts, checks, or other instruments or items that are payable to Debtor that come into the possession of Secured Party and apply all amounts collected to the Liabilities.
Debtor also appoints Secured Party as Debtor's attorney-in-fact with full power and authority, upon Default, to enter Debtor's premises and at Secured Party's option, take possession, remove, and sell the Collateral and to demand, collect, receive, and apply all payments or monies due or to become due to Debtor for the sale or lease of Collateral.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Security Agreement grants the Secured Party (All Team Franchise Corporation) power of attorney in specific circumstances.
The agreement explicitly states that the Debtor (franchisee) appoints All Team as their attorney-in-fact with full power to endorse and collect all drafts, checks, or other instruments payable to the Debtor that come into All Team's possession. All amounts collected can then be applied to the liabilities of the franchisee. This provision allows All Team to manage and apply payments directly to outstanding debts.
Furthermore, upon default by the franchisee, All Team is granted the power to enter the franchisee's premises, take possession of, remove, and sell the collateral. All Team also has the authority to demand, collect, receive, and apply all payments or monies due or to become due to the Debtor for the sale or lease of collateral. This ensures All Team can recover its investment and outstanding debts in the event of a default by the franchisee.
These power of attorney provisions are significant for a prospective All Team franchisee as they grant substantial control to All Team over the franchisee's assets and finances, particularly in situations involving payment collection and default. Franchisees should carefully consider these terms and understand the circumstances under which All Team can exercise these powers.