What is the debtor's responsibility regarding assembling the collateral for the All Team agreement?
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 debtor (franchisee) is responsible for assembling the collateral and making it available to the secured party (franchisor). This must be done at the franchisee's expense and at a location that is convenient and acceptable to All Team.
This provision in the agreement means that if the franchisee fails to meet their financial obligations or breaches the franchise agreement, All Team has the right to demand the franchisee gather all assets used as collateral for the agreement. This could include equipment, inventory, and other property. The franchisee bears the cost of this assembly and transport.
For a prospective All Team franchisee, this highlights the importance of understanding what assets are pledged as collateral and ensuring they can be readily gathered and delivered if a default occurs. Failure to comply with this requirement could further complicate the default situation and potentially increase the franchisee's liabilities to All Team.