What happens to the All Team Funding Agreement if the user terminates the agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
even if subsequently cured, twice within any twelve (12) month period shall give ATFC the right to terminate this Processing Agreement immediately upon giving written notice to USER specifying the nature of such breach, without any opportunity to cure. Upon the termination or expiration of the Franchise Agreement, for any reason, ATFC shall have the right to terminate this Processing Agreement immediately upon written notice to USER.
- B. Default by ATFC. In the event of a breach of any of the terms hereof by ATFC, which breach is not cured within ten (10) days of written notice to ATFC specifying the nature of such breach, USER may, at its election, terminate this Processing Agreement and such termination shall be effective upon the expiration of the ten (10) day cure period. Notwithstanding the foregoing, at no time during or after the term of this Agreement shall USER exercise any right of set-off, defense or counterclaim against any amounts owing to ATFC hereunder.
- C. Post-Termination Obligations. Upon the termination or expiration of this Processing Agreement for any reason, ATFC will require USER to discontinue use of the Software on ATFC's servers.
VI. Miscellaneous.
A. Compliance with Laws and Franchise Agreement. USER shall operate the Business in full compliance with all applicable governmental laws, rules and regulations and in full compliance with the Franchise Agreement. In addition, USER shall carry worker's compensation insurance for all employees and comply with all laws and regulations related thereto, and shall provide proof of such insurance, together with proof of payment for such insurance, to ATFC as requested from time to time.
B. Books and Records.
- USER shall keep at its offices, for a period of seven years after their creation, all payroll and personnel records for its temporary personnel employees and all other books of account and business records customary for the industry, which shall be available for inspection by ATFC and its representatives during normal business hours.
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- USER shall maintain such records as ATFC may reasonably request from time to time, on forms approved in writing by ATFC. USER shall promptly furnish to ATFC in writing, all necessary payroll information regarding USER's temporary employees, including without limitation Wages, rates, names of payees, Direct Payroll Costs, billing information regarding USER's Customers and all information required to be compliant with National/Regional Accounts in the form required by ATFC.
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Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if the USER terminates the Funding Agreement due to All Team's breach, which All Team fails to cure within ten days of written notice, the termination is effective upon the expiration of the ten-day cure period. However, the USER does not have the right to offset, defend, or counterclaim against any amounts owed to All Team under the Funding Agreement, even after termination.
Upon termination or expiration of the Funding Agreement, the USER must pay all outstanding Accounts Receivable in full upon demand via certified or bank cashier's check. After receiving payment, All Team will reassign any security interest in the USER's collateral, subject to All Team's right to offset any damages or losses the USER is liable for. The USER must continue to fulfill its obligations regarding such Accounts Receivable until full payment is made to All Team, and no termination releases the USER from these ongoing obligations.
Furthermore, if the Funding Agreement terminates for any reason other than the USER's termination right, All Team will require the USER to stop using the software on All Team's servers. All Team also reserves the right to conduct a post-termination audit to verify the accuracy of receivables and compliance with client requirements. All Team may withhold up to $10,000 in customer payments pending the audit results, or for up to 12 months after termination, as a reserve for unpaid receivables or customer chargebacks. In the event that All Team is required to make any payment after the termination of this Agreement, USER shall, on demand, reimburse ATFC the full amount of any such payment. Such reimbursement obligation shall survive the termination of this Agreement.