Who does the Funding Agreement benefit besides ATFC and the All Team franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
demands resulting from or arising out of USER's acts or omissions or those of its employees or agents, including those under or related to this Funding Agreement or the transactions or relationships contemplated hereby, and (ii) any breach or default by USER under this Funding Agreement. USER shall reimburse ATFC for any and all costs, damages, liabilities, losses, deficiencies, assessments and expenses, including reasonable attorney's fees and court costs that ATFC may suffer or incur or to which ATFC may be subject by reason of any of the foregoing.
- E. Assignment. This Funding Agreement is personal to USER and shall not be assignable or transferable by USER, in whole or in part, either voluntarily or by operation of law, except with the prior written consent of ATFC with a copy to Centennial, which consent shall not unreasonably be withheld.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, besides All Team Franchise Corporation (ATFC) and the franchisee (USER), Centennial Bank also benefits from the Funding Agreement. Specifically, the Funding Agreement is assignable by ATFC with a copy to Centennial, indicating Centennial's interest in the agreement.
Centennial Bank's benefit is further solidified by the clause that specifies that in the event of a breach by ATFC, the franchisee must provide written notice to both ATFC and Centennial, allowing Centennial an opportunity to address the breach. Additionally, All Team has the right to terminate the Funding Agreement immediately upon the expiration or termination of the Centennial Agreement.
This arrangement suggests that Centennial Bank has a financial stake or agreement with All Team that is linked to the franchisee's Funding Agreement. For a prospective franchisee, this means that the terms of their funding could be indirectly influenced by the relationship between All Team and Centennial Bank. It also implies that any issues with All Team's financing from Centennial could impact the franchisee's funding agreement.