For All Team, what happens if all the Liabilities have been fully paid?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will terminate when (a) any commitment or offer of Secured Party to extend credit to Debtor expires (without renewal by Secured Party) or is terminated by Secured Party and (b) all the Liabilities have been fully paid.
Upon termination of this Agreement and the request of Debtor, Secured Party shall terminate all effective financing statements in its favor that are then on file with respect to 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 security agreement terminates when any commitment to extend credit expires or is terminated by All Team, and all liabilities have been fully paid.
Specifically, the document states that upon termination of the agreement and at the franchisee's request, All Team will terminate all effective financing statements in its favor that are on file regarding the collateral. This means All Team will release its legal claim on the franchisee's assets used as security.
This provision protects the franchisee by ensuring that All Team does not maintain a lien on their assets after all debts are settled and the franchise relationship concludes. It is a standard practice in franchising to release claims on assets once obligations are met, providing a clear end to the financial relationship between the franchisee and franchisor.