What client requirements are assessed during All Team's post termination audit?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ign to USER any security interest or other interest which ATFC may have in USER's collateral. Notwithstanding any termination of this Funding Agreement, until such time as full payment is made by USER to ATFC of all sums due to ATFC under this Funding Agreement, USER shall continue to perform all of its obligations pursuant to the terms of this Funding Agreement with regard to such Accounts Receivable. No termination of this Funding Agreement, under any circumstances, shall release or discharge USER from its continuing obligations hereunder.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, after termination or expiration of the Funding Agreement, All Team reserves the right to conduct a post-termination audit. This audit is to confirm the accuracy of receivables and compliance with client requirements.
This means that All Team has the right to review the franchisee's records after the franchise agreement ends to ensure that all financial matters related to receivables are accurate and that the franchisee has adhered to all client-specific requirements during the term of the agreement. This is a standard practice to protect the franchisor's financial interests and maintain the integrity of their client relationships.
Furthermore, All Team may withhold up to $10,000 in customer payments pending the result of the audit, or for up to 12 months after termination, as a reserve for unpaid receivables or customer chargebacks. This provision allows All Team to secure funds to cover any discrepancies found during the audit, such as unpaid receivables or customer chargebacks, providing a financial safety net for the company. Prospective franchisees should be aware of this potential hold on payments and factor it into their financial planning upon exiting the All Team franchise system.