What does the All Team franchisee authorize the Secured Party to do regarding financing statements?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Debtor authorizes Secured Party to file, in jurisdictions where this authorization will be given effect, a financing statement signed only by Secured Party and describing the Collateral in substantially the same manner as it is described in this Agreement.
In addition, Debtor appoints Secured Party as Debtor's attorney-in-fact with full power and authority to sign any financing statement, including, without limitation, UCC-1s and UCC-3s, covering the Collateral on behalf of Debtor.
- **4.
Representations, Warranties, and Covenants.** Debtor represents, warrants, and covenants to Secured Party the following:
- (a) Security Interests.
Debtor has not filed, nor has Debtor permitted any other third party to file, and Debtor will not file or permit any third party to file, any financing statements in any public office covering the Collateral except those allowed by Secured Party in writing.
Debtor covenants that it will not pledge the Collateral to any Person other than Secured Party, that the Collateral will remain free of all Liens except those permitted by Secured Party, and that Debtor will defend the Collateral against the claims and demands of all Persons at any time claiming an interest in the Collateral.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee (referred to as the Debtor) authorizes the Secured Party to take certain actions regarding financing statements. Specifically, the Debtor allows the Secured Party to file financing statements signed only by the Secured Party. These statements will describe the collateral in a manner substantially similar to how it's described in the franchise agreement. This authorization is applicable in jurisdictions where such authorization is legally effective.
Furthermore, the All Team franchisee appoints the Secured Party as their attorney-in-fact. This appointment grants the Secured Party full power and authority to sign any financing statement on behalf of the franchisee, including UCC-1s and UCC-3s, which cover the collateral. This essentially gives the Secured Party the legal right to act in the franchisee's name when filing these financial documents.
The franchisee also makes several representations, warranties, and covenants to the Secured Party. One key covenant is that the franchisee has not filed, nor permitted any third party to file, any financing statements covering the collateral, except those explicitly allowed by the Secured Party in writing. The franchisee also agrees not to pledge the collateral to anyone other than the Secured Party and to defend the collateral against any claims from other parties, ensuring the Secured Party's interest remains protected.