What is the maximum length of time All Team can withhold customer payments after termination?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
s Funding Agreement with regard to such Accounts Receivable. No termination of this Funding Agreement, under any circumstances, shall release or discharge USER from its continuing obligations hereunder.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, following the termination or expiration of the Funding Agreement, All Team has the right to withhold customer payments for a specific duration. Specifically, All Team can withhold up to $10,000 in customer payments.
This withholding serves two purposes: first, it acts as a reserve for unpaid receivables, and second, it covers potential customer chargebacks. The maximum period for which All Team can withhold these payments is 12 months following the termination date.
This provision is important for prospective franchisees to understand, as it directly impacts their cash flow after the termination of the Funding Agreement. Franchisees should factor this potential delay in receiving customer payments into their financial planning, especially when considering the implications of ceasing operations or transitioning to a new business venture. It is also important to note that All Team reserves the right to conduct a post-termination audit to confirm the accuracy of receivables and compliance with client requirements.