What is the definition of 'Lien' or 'Liens' within the All Team agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- (p) "Lien" or "Liens" means any restriction on the use or transferability of property and a claim or charge on any interest in property securing an obligation owed to, or claimed by, a person other than the owner of the property, whether the claim or charge exists by reason of statute (including any federal, state, or local tax statute or ordinance), contract, or common law, and includes a lien or security interest arising from a mortgage, indenture, security agreement, encumbrance, pledge, hypothecation, conditional sale, trust receipt, or collateral assignment and a lease, bailment, or consignment for security purposes.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a "Lien" or "Liens" is defined as any restriction on the use or transferability of property. It also includes a claim or charge on any interest in property securing an obligation owed to, or claimed by, a person other than the owner of the property.
This claim or charge can exist because of a statute (including any federal, state, or local tax statute or ordinance), contract, or common law. The definition encompasses a lien or security interest arising from a mortgage, indenture, security agreement, encumbrance, pledge, hypothecation, conditional sale, trust receipt, or collateral assignment.
Furthermore, the definition extends to a lease, bailment, or consignment for security purposes. This definition is important for prospective franchisees to understand, as it clarifies the types of claims or restrictions that could be placed on their business assets and property, potentially impacting their ability to use or transfer them freely.